Answer the following statements true (T) or false (F)
1. One basic argument for redistributing income to achieve more equality rests on the idea of maximizing the society's total utility when there is diminishing marginal utility from income.
2. The basic reason why the debate between income equality versus inequality is on-going is because there is a trade off between income equality and economic efficiency.
3. U.S. income statistics indicate that more than one-eighth of the nation lived in poverty in 2011.
4. The poverty rate in the U.S. increased significantly in the period 2007-2010.
5. The incidence of poverty is very high among the elderly (65 years or older).
1. T
2. T
3. T
4. T
5. F
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The benefits of net capital inflows to a country include all of the following except:
A. interest and dividend payments owed to foreign investors. B. a potentially higher growth rate. C. a higher rate of investment in new capital. D. a larger pool of total savings.
The range in which a duopoly's output falls is less than or equal to the output level in ________ and more than or equal to the output level in ________
A) monopolistic competition; monopoly B) monopolistic competition; perfect competition C) perfect competition; monopoly D) monopoly; monopolistic competition E) monopoly; perfect competition
Explain why a minimum wage is unfair
What will be an ideal response?
In the allocation of resources between present and future
a. the market works imperfectly. b. the market works perfectly. c. centrally planned economies are more efficient than market economies. d. the invisible hand guarantees efficiency in market economies.