Make a case for income inequality
First, by rewarding people for their productivity by paying them wages equal to their MRPs, people will
have the incentive to work and improve their skills. Since MRPs vary, people must receive different wage
rates, and this creates income inequality. Second, because the rich can afford to save a higher percentage of
their income than can the poor, they tend to do the economy's investing, thus generating economic growth
that benefits everyone.
You might also like to view...
Speculation would involve using forward contracts and options to reduce the exchange rate risk on future foreign exchange transactions
Indicate whether the statement is true or false
When a tax is imposed on a good, the
a. supply curve for the good always shifts. b. demand curve for the good always shifts. c. amount of the good that buyers are willing to buy at each price always remains unchanged. d. equilibrium quantity of the good always decreases.
The ________ is the ratio of the number of people in the labor force to the total adult population
a. unemployment rate b. labor force c. labor force participation rate d. employment rate
If a college sets its tuition __________ the equilibrium tuition, then it will have to use some form of nonprice-rationing device to determine who will be accepted for admission to the college
A) above B) below C) equal to D) all of the above