What is the argument for income inequality?
What will be an ideal response?
Those against income equality argue that the structure of income payouts determine the level of income earned. They argue that taxing those who earn high incomes to transfer that taxation to those with low incomes reduces the incentive of both groups to earn high incomes. They ask, “Why would someone earning a high income be motivated to earn more if it will simply be taxed away to give to the poor?” Moreover, they argue, “Why would a low-income earner be motivated to earn a higher income if their income is supplemented by high-income earners?” Thus income equality removes the incentives to work hard.
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Compared to 1929, total output in the U.S. today is approximately ________ times larger.
A. 5 B. 25 C. 2 D. 15
The major contributor to the long-run improvement of a country's standard of living is
A) low inflation. B) growth in government. C) population growth. D) technological progress.
The above figure shows the demand curve for crude oil. If the market price is $10 a barrel, what is the price elasticity of demand?
A) -.02 B) -1 C) -10 D) -500
Refer to the table below. If Fresh Laundry is currently producing 10 quality units, to maximize profit, Fresh Laundry should ________ the number of quality units as the current quality marginal revenue is ________ its marginal cost.
Fresh Laundry is a firm that produces laundry detergent. The table above summarizes Fresh Laundry's product quality marginal revenue and marginal cost at various quality levels.
A) decrease; equal to
B) decrease; less than
C) maintain; less than
D) maintain; equal to