Which of the following are possible justifications for government redistribution of income?
a. The desire for a more unequal distribution of income.
b. Charity is a collective consumption good and thus might be underprovided.
c. Redistribution acts as insurance against further coercion.
d. Private redistribution of income merely shuffles money around the rich and upper-middle class.
b
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A market in which the money of one nation is exchanged for the money of another nation is a ________.
A. foreign exchange market B. resource market C. stock market D. bond market
An import ban results in
A) an increase in the product's price. B) a decrease in the quantity of the product bought and sold. C) a decrease in the supply of the product. D) all of the above.
“Fair” outcomes and “efficient” outcomes are always identical.
Answer the following statement true (T) or false (F)
Jack has an MPC of 0.82 and Jill has an MPC of 0.78. Ceteris paribus, if the government transfers income from people who behave like Jack to people who behave like Jill,
A. Aggregate demand will increase. B. Aggregate demand will decrease. C. It is not possible to predict what will happen to aggregate demand. D. Aggregate demand will remain the same.