In the pizza analogy for income distribution, the pizza would shrink because:
A. The burden for the consumer would be greater than the burden for the producer
B. The risk of investment would be greater than the potential return on investment
C. There would be inequitable treatment of people
D. Redistribution would reduce incentives to work
D. Redistribution would reduce incentives to work
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One way to sidestep the debate over whether the government should increase spending during economic downturns is to:
A. cut government spending so the government has no ability to spend money. B. return to the gold standard so that the value of the U.S. dollar remains strong. C. identify projects that nearly everyone can agree the government should fund. D. raise taxes so that the government has the money it needs for additional spending.
Consider the stock of ocean tuna which is massively overfished. It is rational for an individual to exploit the resource rather than to conserve the stock because
A) the marginal private benefit of harvesting tuna is lower than the marginal social benefit of harvesting it. B) the marginal private cost of harvesting the fish is lower than the marginal social cost. C) the marginal social cost of harvesting the fish is lower than the marginal private cost. D) the marginal private benefit of harvesting tuna is higher than the marginal social benefit of harvesting it.
If the MPC is 0.6, and the government increases its spending by $300b, the overall effect on GDP will be:
A. a decrease of $750b. B. an increase of $750b. C. a decrease of $550b. D. an increase of $250b.
The first union to organize workers across skills, industries, and regions was the
a. Knights of Labor b. Knights of Columbus c. American Federation of Labor d. Congress of Industrial Organizations e. Taft-Hartley