The empirical data indicate that the tax system and the transfer programs of the government:
A. Increase the degree of inequality in the distribution of income
B. Make no change in the degree of inequality in the distribution of income
C. Reduce the degree of inequality in the distribution of income
D. Affect the distribution of wealth, not income
C. Reduce the degree of inequality in the distribution of income
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During the colonial period, regulation of business activities was the right of government and its duty—extensive regulation was done, such as licensing, inspection, price fixing, etc
Which statement best describes regulation in the decades after 1789? (a) Regulation continued at about the same level as during the colonial period. (b) As commerce and manufacturing became more complex, the old police-power controls by detailed inspection became increasingly difficult to maintain and many controls were abolished by the states. (c) Because the economy was becoming more complicated, the task of regulation shifted to the federal government. (d) Regulation was abandoned because it was inconsistent with property rights guaranteed by the Constitution.
Suppose the central bank increases the money supply in an economy unexpectedly during a year. If the current inflation rate in this country is 3.4 percent, then according to new classical economists, the expected inflation rate for the following year would be:
a. 3.4 percent. b. less than 3.4 percent. c. 2.4 percent, because people form their expectations adaptively. d. around 6.8 percent. e. greater than 3.4 percent.
For you to be considered not in the labor force, you can be
A. a full-time volunteer. B. a full-time retiree. C. a full-time student. D. any of the above.
According to the permanent income hypothesis, a one-time tax rebate will generally have a considerable impact on consumption.
Answer the following statement true (T) or false (F)