Which of the following statements is a correct interpretation of some economists' views?
A. When the rich do well, the total pie is increased so much that the benefits that trickle down to the poor are greater than the proceeds they would get from redistribution.
B. When the government gives income to the head of a household, other members of the household remain in need.
C. When the rich do well, the total pie is decreased, so that the poor are worse off than they were before.
D. When the incomes of the poor are increased, the poor purchase more goods and services, and this causes lower profits.
Answer: A
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When one person's opportunity cost of producing a good is lower than another person's opportunity cost of producing the same good, it is called
A) an absolute advantage. B) a comparative advantage. C) specialization. D) production possibilities. E) a trade-off.
Explain what will happen when the government imposes a minimum price that is below the market equilibrium price. Why is this true?
What will be an ideal response?
A tax cut will unambiguously lower income-tax revenue
Indicate whether the statement is true or false
Which of the following is a reason that banks are so heavily regulated?
A. Governments are concerned about the safety of deposits. B. The industry is a principal determinant of aggregate demand. C. Bank failures are contagious. D. All of these responses are correct.