In the United States:
A. taxes decrease, but transfers increase, income inequality.
B. taxes increase, but transfers reduce, income inequality.
C. both taxes and transfers decrease income inequality.
D. both taxes and transfers increase income inequality.
Answer: C
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If a number equal to the mean of a series of observations is added to the series, the new mean is:
A) smaller than the original mean. B) greater than the original mean. C) same as the original mean. D) either greater or smaller than the original mean depending on the number of observations in the series.
The consumption function is the relationship between ________, other things remaining the same
A) consumption expenditure and net taxes B) net taxes and disposable income C) consumption expenditure and the price level D) consumption expenditure and disposable income E) consumption expenditure and saving
The portion of income that is not immediately spent on consumption of goods and services is:
A. savings. B. consumption spending. C. investment. D. loanable funds.
Compared to IACs, LDCs are often characterized by:
A. higher life expectancy. B. higher adult literacy rates. C. higher daily calorie supply. D. lower per capita energy consumption.