A valid argument against redistributing income to achieve complete equality is that
a. income equality would destroy the social cohesiveness that exists among different income groupings.
b. this would eliminate the monetary incentives to work and produce.
c. the cost of obtaining the equality would be so deflationary as to promote economic instability.
d. income equality would imply class segregation based on factors such as sex or race since income would be constant.
B
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Leontief explained his findings by arguing that U.S. labor is more efficient than their foreign counterparts
Indicate whether the statement is true or false
Coca-Cola bottlers increased their prices as the price of sugar (an important ingredient in producing Coke) rose sharply in the late 1980s. Under these circumstances, the increase in the price of Coke occurs as a result of a(n): a. decrease in supply. b. decrease in demand. c. increase in supply
d. increase in demand.
Contrast demand-pull inflation with cost-push inflation.
What will be an ideal response?
National income accountants define investment to include ________.
A. the purchase of common or preferred stock B. the addition of cash to a savings account C. any increase in business inventories. D. the purchase of any consumer durable good, for example, an automobile or a refrigerator