Governments enact policies to
a. make the distribution of income more efficient.
b. make the distribution of income more equal.
c. maximize the use of the welfare system.
d. minimize the use of in-kind transfers.
b
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Your neighbor likes to blast 1970's rock music and the louder the better. The loud music imposes a cost on you because it disrupts your study of economics. Let D stand for the volume of his music in decibels, B for his benefits and C for your costs, where B and C are measured in dollars. For any given volume, D, your neighbor's benefit is B = 0.63D - 0.002D2 and your cost is C = 0.06D + 0.001D2. What is the efficient volume, D?
A. 90 B. 95 C. 115 D. 345
A firm should hire workers up to the point where
A) MP = P. B) MFC = P. C) MFC = MRP. D) MP = MRP.
Laura says that the present value of $700 to be received one year from today if the interest rate is 6 percent is less than the present value of $700 to be received two years from today if the interest rate is 3 percent. Cassie says that $700 saved for one year at 6 percent interest has a smaller future value than $700 saved for two years at 3 percent interest
a. Both Laura and Cassie are correct. b. Both Laura and Cassie are incorrect. c. Only Laura is correct. d. Only Cassie is correct.
After 1970, the share of federal spending allocated to national defense:
A. declined sharply, while the share allocated to income security increased substantially. B. rose sharply, while the share allocated to income security declined substantially. C. was relatively constant, while the share allocated to income security declined modestly. D. declined modestly, while the share allocated to income security was relatively constant.