Economists might be willing to accept a policy that adversely affected distribution of income if it
a. lessened income disparities.
b. diminished labor productivity by a large amount.
c. increased productivity by a large amount.
d. were favorable to the rich.
c
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Which of the following would increase the amount of an inferior good that buyers would like to purchase?
a. an increase in buyers' incomes b. an increase in the price of a complement c. a decrease in the price of a substitute d. a decrease in buyers' incomes e. a decrease in its expected future price
What effect does the following transaction have on the U.S. balance of payments?(Choose the proper debit and credit entries.)Ford Motor Company (U.S.) purchases automobile parts from Mexico and agrees to pay the Mexican supplier in U.S. dollarsin 90 days
a. Debit the U.S. financial account; credit the U.S. current account. b. Credit the U.S. financial account; debit the U.S. current account. c. Debit the U.S. financial account; credit the U.S. financial account. d. Credit the U.S. financial account; debit errors and omissions.
A monopolist sells 6 units of a product per day at a unit price of $15. If it lowers price to $14, its total revenue increases by $22. This implies that its sales quantity increases by:
A. 4 units per day B. 3 units per day C. 2 units per day D. 1 unit per day
Import restrictions create an incentive to smuggle
Indicate whether the statement is true or false