In a market economy:
a. income is distributed based on the productivity of resources
b. the resources owned by different households are not all the same productivity
c. both of the above
d. neither of the above
answer: c. both of the above
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In a circular-flow diagram, total income and total expenditures in an economy are:
A) equal because firms are ultimately owned by households. B) equal only if there is no saving. C) equal because every transaction has a buyer and a seller. D) always equal because some people's income is not for production.
Which of the following can cause official unemployment figures to underestimate the true unemployment rate?
A) Some people get discouraged and quit looking for a job. B) Some people engage in illegal activities. C) Some people work "off the books." D) Some people work overtime.
Describe the comparable worth controversy?
Fiscal policy is the manipulation of government spending and taxes
a. True b. False Indicate whether the statement is true or false