What linkage do advocates of income inequality make between income distribution and economic growth?
a. Income equality creates greater investment, which leads to lower rates of economic growth
b. Income inequality creates less saving and more consumption, which stimulate higher rates of economic growth.
c. Income inequality creates greater investment, which leads to higher rates of economic growth.
d. Income equality creates more saving and less consumption, which leads to lower rates of economic growth.
e. Income equality creates more investment and less consumption, which leads to higher rates of economic growth.
C
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Which of the following is correct for a single-price monopoly?
i. The firm can determine the quantity it produces and the price it charges. ii. It would never profitably produce output in the inelastic range of its demand. iii. Its marginal revenue is less than price. A) i only B) i and iii C) ii only D) ii and iii E) i, ii, and iii
The demand curve in the figure above illustrates the demand for a product with a price elasticity of demand
A) equal to zero at all prices. B) equal to infinite at all prices. C) equal to one at all prices. D) that is different at all prices.
A prisoner's dilemma problem can be solved by _____
a. the parties are kept from communicating with each other. b. a third party enforced their cooperation c. the parties were not guilty of the crime d. giving the parties sufficient time to arrive at the social beneficial decision
Which of the following is true? a. Average cost pricing reduces the incentives for a monopolist to find ways to reduce its costs
b. With natural monopoly, if regulators allow the firm to earn profits, there will be a welfare cost from producing too little of the good. c. Government regulation of monopolies aims to achieve the efficiency of large-scale production, without permitting the producers to charge monopoly prices. d. All of the above are true.