If income were distributed according to the egalitarian principle of "to each exactly the same," then one problem would be that
A) there would be little or no incentive for individuals to take risky, hazardous, or unpleasant jobs.
B) individuals would have an excess desire to invest in their own human capital.
C) too many individuals would want to take risky jobs.
D) productivity levels would probably become too high.
Answer: A
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The Phillips curve:
a. is downward sloping. b. is upward sloping. c. shows there is a tradeoff between unemployment and the inflation rate. d. shows there is a tradeoff between population and the inflation rate.
Rent seeking
a. often entails large opportunity costs. b. prevents waste of resources. c. often promotes fairness in distribution of resources. d. cannot occur in a planned economy.
The main function of the Federal Reserve System is to:
A. supervise the operation of member banks. B. control the money supply. C. serve as the fiscal agent for the federal government. D. clear checks from member banks.
An increase in an economy's productive resources will lead the production possibilities curve to:
A. shift outward. B. become flatter. C. shift inward. D. stay the same.