Income redistribution ________
A) creates an income distribution that is less equal than the market distribution
B) is efficient because it makes the distribution of income more equal.
C) eliminates the big tradeoff between rich and poor
D) creates a deadweight loss
D
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When the United States engaged in quantitative easing from 2008 to 2014, why didn't the money supply rise sharply?
A) Foreigners wanted all the new dollars created by the Federal Reserve. B) Banks held the increased monetary base as excess reserves. C) The Fed offset the increased monetary base by raising reserve requirements. D) The Fed offset the increased monetary base by buying foreign currency.
With respect to the market clearing price and the equilibrium quantity of good X, increases in the demand for and the supply of good X will definitely
A) increase the market clearing price of good X but have an uncertain impact on the equilibrium quantity of X. B) reduce the market clearing price and the equilibrium quantity of good X. C) increase the market clearing price and the equilibrium quantity of good X. D) increase the equilibrium quantity of good X but have an uncertain impact on the market clearing price of X.
Which of the following would be most likely to cause the per capita income of less-developed countries to rise?
a. Development of strong labor unions. b. More rapid population growth. c. Investment expenditures that enhance the human capital of labor force participants. d. An international minimum wage law.
In the context of insurance, moral hazard refers to:
A. when risks are shared across many different assets or people, reducing the impact of any particular risk on any one individual. B. the tendency for high-risk individuals to seek out more insurance than low-risk individuals. C. when people organize themselves in a group to collectively absorb the cost of the risk faced by each individual. D. the tendency for people to behave in a riskier way after they have acquired insurance.