Which of the following is true?
a. The incentives to engage in rent-seeking activities increase with the ease with which the political process can provide personal gain at the expense of others.
b. The amount of resources devoted toward rent seeking generally has no impact on the economic prosperity of a nation.
c. Income transfers directed toward the poor constitute about half of all income transfers in the United States.
d. All of the above are correct.
A
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If a contractionary monetary policy is adopted, ________
A) the real interest rate will fall B) real output will increase C) the price level will fall D) the demand for labor will increase
If this quote is TRUE, what would the neoclassical growth theory predict?
A) Economic growth stops because most technological advances have already been made. B) Economic growth is temporary regardless of technological change and GDP per person returns to subsistence levels. C) Economic growth will persist indefinitely because technological change will accelerate again as firms seek profits. D) Economic growth will accelerate because these technological changes are permanent.
When an economy experiences strong economic growth,
a. the number of families in the bottom 10 percent of the income distribution decreases b. the income of families in the bottom of the income distribution increases c. only the top of the income distribution is affected d. the accompanying inflation cancels out any change in income distribution e. the rich are no better off because taxes rise with income
Which of the following is not true for social insurance?
a. It is usually supported by taxes, usually income tax or payroll tax. b. It serves the basis for most redistribution programs. c. It requires mandatory participation to be effective. d. It is the basis of the provision of medical care to the poor, elderly, and other vulnerable population groups in the U.S. e. It is usually experience-rated with premiums based on ability to pay.