According to the graph for differences in marginal utility of income, if the rich have a greater marginal utility of income, when society transfers money from the rich to the poor, ______.
a. the rich gain more than the poor lose
b. the poor lose more than the rich gain
c. the rich lose more than the poor gain
d. the poor gain more than the rich lose
c. the rich lose more than the poor gain
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When a firm uses profits to purchase new capital equipment, it is engaging in
A) tax evasion. B) balance sheet accounting. C) reinvestment. D) the most risky way the firm can obtain investment funds.
The structural deficit does not depend on the state of the economy.
Answer the following statement true (T) or false (F)
Over the long haul, rapid increases in the supply of money lead to
A) inflation. B) higher levels of production and real output. C) rapid growth of real wages. D) lower unemployment rates
Figure 4.5 illustrates a set of supply and demand curves for hamburgers. An increase in supply and an increase in demand are represented by a movement from:
A. point d to point b. B. point d to point a. C. point c to point a. D. point b to point c.