The distribution of income in the United States is characterized by the following relationship between the mean, median, and mode incomes
A) mean income < median income < mode income.
B) mode income < median income < mean income.
C) median income < mean income < mode income.
D) mode income < mean income < median income.
B
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If real GDP is less than potential GDP, then the money wage rate ________, and aggregate supply ________ so that the price level ________
A) rises; decreases; rises B) does not change; increases; falls C) falls; decreases; rises D) rises; increases; falls E) falls; increases; falls
Policymakers focus on marginal tax rate changes when making changes in the tax code because the marginal tax rate
A) determines how tax revenue will change as national income increases. B) determines how much revenue the government will have to spend. C) always equals the average tax rate which is harder to measure. D) affects people's willingness to work, save, and invest.
Who ultimately benefits from price supports in agriculture?
A) consumers B) grocery store owners C) farmers D) exporters
Arguments in favor of a laissez-faire policy concerning government's role in the economy include the
a. need for price controls b. possibility of creative destruction c. gains from trade d. contestable nature of markets e. lack of countervailing power among the economic blocs in the economy