As a result of a successful attempt by government to cut the economic pie into more equal slices,
a. the pie gets larger, and there will be more pie overall.
b. the pie gets smaller, and there will be less pie overall.
c. it increases the reward for working hard, resulting in people producing more goods and services.
d. those who earn more income pay less in taxes.
b
You might also like to view...
Producing paper creates pollution. There is no externality in the consumption of paper. The efficient quantity of paper is when the
A) marginal social benefit of paper is equal to zero. B) marginal social cost of the pollution from making paper is equal to zero. C) marginal social benefit of paper is equal to the marginal social cost of paper. D) marginal private cost of the pollution from making paper is equal to zero.
Which of the following would cause movement downward along the demand curve for a normal good, leading to an increase in quantity demanded?
a. A decrease in the price of a substitute good b. An increase in the price of a complementary good c. A decline in the price of the good d. Consumer expectations that the good will become more expensive in the near future
Which of the following is not true of Keynes?
A. Professor at Cambridge B. Wrote the book The General Theory of Employment, Interest and Money C. Big fan of monetary policy D. Active in the arts E. Focused on the short run
Other things equal, which may cause an increase in the price of used houses?
a. An increase in construction costs for new houses b. An increase in property taxes c. An increase in mortgage interest rates d. A decrease in the population of first-time homebuyers