Explain the two theories of desired income distribution: the egalitarian principle and the productivity standard
What will be an ideal response?
The egalitarian principle suggests that income should be distributed equally across all individuals in society. The productivity standard suggests that people should be rewarded according to merit, with merit being judged by one's ability to produce what is considered valued by society.
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In general, price controls have a:
A. larger effect in the long run because demand and supply become more elastic over time. B. larger effect in the short run since demand and supply become more elastic over time. C. smaller effect in the long run since demand and supply become less elastic over time. D. smaller effect in the short run because demand and supply become less elastic over time.
A disadvantage of having an annually balanced budget is that government spending would have to: a. allow the national debt to burgeon with chronic deficits
b. decline during a recession to offset the increase in tax revenues. c. rise during a recession to match the increase in tax revenues. d. rise during an expansion to offset the decline in tax revenues. e. decline in a recession to match the decrease in tax revenues.
If the federal government is running a budget deficit,
a. the national debt will decline. b. it will have to either raise taxes or reduce expenditures next year. c. the U.S. Treasury will finance the deficit by issuing additional bonds. d. the supply of money will increase and the general level of prices will rise.
Trade allows all countries to achieve greater prosperity
a. True b. False Indicate whether the statement is true or false