A nation's citizens often dislike the economy's distribution of income. Explain two methods for creating a more equal distribution of income
One method is to override the market distribution to force a more equal distribution of incomes. A second method, that is used to varying degrees in virtually all of the private-enterprise economies, is to use transfer payments, sums of money that individuals receive from the government without providing any goods or services in return. By taxing wealthier individuals and giving transfer payments to poorer individuals, a more equal distribution of after-tax income may be achieved.
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The outflow of highly-educated workers from low-income countries to high-income countries is called:
A. Backflow B. Self-selection C. Skill transferability D. Brain drain
An increase in a nation's population results in
A) an upward shift in the production function. B) a movement along the production function. C) a leftward shift in the labor supply curve. D) Both answers A and C are correct.
Firms that can price discriminate between customers do so to ________
A) increase consumer surplus B) increase employment C) increase their profit D) decrease the quantity they produce
Assume the government decides to reduce spending in order to reduce the budget deficit, which it financed by borrowing in the real credit market. Where and how should you begin your analysis when analyzing the chain reaction of economic interactions?
a. Start the analysis in the real goods market with aggregate demand shifting to the right. b. Start the analysis in the real goods market with aggregate supply shifting to the left. c. Start the analysis in the real goods market with aggregate supply shifting to the right. d. Start the analysis in the real credit market with demand for real credit shifting to the left. e. Start the analysis in the real credit market with demand for real credit shifting to the right.