Which of the following statements is true?
A. Taxing the wealthy will lead to a more efficient economy.
B. Taxing the poor will lead to a more equal distribution of income.
C. A basic trade-off exists between the goals of equity and efficiency for a society.
D. The forces of supply and demand will automatically lead to an equitable distribution of income.
C. A basic trade-off exists between the goals of equity and efficiency for a society.
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Suppose Motorland's government imposes a tax of $1.50 per gallon of gasoline sold. With the tax, when the market is in equilibrium, the deadweight loss is
A) zero. B) $37,500 per month. C) $150,000 per month. D) $75,000 per month.
The key to wealth building and personal freedom is found in obtaining a high paying job.
Indicate whether the statement is true or false.
If e = 0.10, c = 0.20, and H = 440, the money supply at full multiplier expansion is
A) 4400. B) 1467. C) 1760. D) 1907. E) 1173.
It does not make economic sense to maximize short run performance over long run performance
Indicate whether the statement is true or false