One of the potential consequences of the public debt is that it may
A. make income distribution more equitable.
B. lead to additional future taxes that reduce economic incentives.
C. increase the debt burden of foreign creditors.
D. decrease interest rates and increase investment spending.
Answer: B
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In order for product differentiation to take place
A. there must be physical differences among the products. B. there cannot physical differences among the products. C. there may or may not be physical differences among the products.
One principal advantage of the corporations is that owners:
A. are sole proprietors. B. are not taxed for income received. C. have limited liability. D. always control the company.
Refer to the information provided in Figure 3.13 below to answer the question(s) that follow.
Figure 3.13Refer to Figure 3.13. Assume hamburgers are a normal good. A decrease in income will cause a movement from
A. S2 to S1. B. Point G to Point F. C. D2 to D1. D. Point A to Point B.
The ________ is a commonly used measure of the degree of inequality in an income distribution.
A. utility possibility frontier B. Gini coefficient C. Herfindahl-Hirschman index D. Lorenz curve