Which of the following arguments support the proposition that society should accept at least some income inequality?
A) Income redistribution will require taxation, causing inefficiently low levels of labor supply and saving, thus decreasing the size of the economic pie.
B) Administrative costs associated with income redistribution imply that low-income people receive less than $1 for each dollar taken from high-income people.
C) Income redistribution programs divert skilled labor and capital to tax compliance activities and away from production of goods and services that people value.
D) All of the above answers are correct because all support the proposition that society should accept some income inequality.
D
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Several firms in an industry laid off their workers. Assuming all else equal, this will lead to a ________
A) higher rate of output in the industry B) higher rate of capacity utilization in the industry C) lower rate of capacity utilization in the industry D) higher real wage in the industry
Which of the following is an example of implicit collusion?
A) price leadership B) a retaliation strategy C) a second-price auction D) product differentiation
Which of the following best explains the shape of the individual labor-supply curve?
a. The individual labor-supply curve is exactly like any supply curve, it always has a positive slope. b. The individual labor-supply curve slopes downward at all wage rates because, as wages increase, people are able to buy more leisure. c. The individual labor-supply curve slopes upward at lower wage rates and then bends back at higher wage rates. d. The individual labor-supply curve must be vertical because each person can work only eight hours per day. e. The individual labor-supply curve must be horizontal because labor markets are assumed to be perfectly competitive.
The __________ serve to allocate financial resources among households and firms requiring funds.
Fill in the blank(s) with the appropriate word(s).