Policies that redistribute income
a. reduce the rewards of high-income earners.
b. raise the rewards of low-income earners.
c. reduce the incentive to earn high income.
d. All of the above are correct.
d
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Figure 4.3 illustrates the demand for tacos. If people expect the price of tacos to decrease in the near future, this would most likely bring about a movement from
A) point a to point b. B) point c to point a. C) D2 to D0. D) D0 to D1.
If a person who weighs 100 lbs. is riding in an elevator and is joined by a person weighing 120 lbs., what happens to the average weight of persons on the elevator?
a. It falls. b. It rises. c. It stays the same.
The three basic legal forms of business enterprise are
a. monopolists, competitors, and enterprises. b. vertical, horizontal, and conglomerate corporations. c. conglomerates, multinationals, and partnerships. d. proprietorships, partnerships, and corporations.
Monetarists believe:
A. the cause-and-effect relationship hypothesized by the Keynesians understates the impact of stimulative monetary policy. B. the cause-and-effect relationship hypothesized by the Keynesians is an accurate description of how monetary policy works. C. since the economy is operating at full employment, any stimulative monetary policy will cause the inflation rate to rise. D. the cause-and-effect relationship hypothesized by the Keynesians is backwards, and decreases in the money supply actually stimulate economic activity.