Question 1

A likely effect of government policies that redistribute income and wealth from the wealthy to the poor is that those policies

Accepted Answer

The answer of A likely effect of government policies that...

Question 2

A likely effect of government policies that redistribute income and wealth from the wealthy to the poor is that those policies

Accepted Answer

Government policies that redistribute income and wealth from the wealthy to the poor are designed to enhance equality. However, they may not necessarily enhance efficiency or increase the reward for working hard.

Question 3

As a result of a successful attempt by government to cut the economic pie into more equal slices,

Accepted Answer

The answer of As a result of a successful attempt...

Question 4

When the government attempts to improve equality in an economy the result is often

Accepted Answer

When the government attempts to improve equality in an economy, it often involves redistributive policies such as taxation and welfare programs. These policies can reduce efficiency by discouraging work and investment among high-income individuals and creating disincentives for innovation and entrepreneurship. Additionally, such policies can lead to market distortions and inefficiencies as resources are allocated based on political rather than economic considerations. Therefore, the result is often a reduction in efficiency.

Question 5

Suppose the government taxes the wealthy at a higher rate than it taxes the poor and then develops programs to redistribute the tax revenue from the wealthy to the poor. This redistribution of wealth

Accepted Answer

The redistribution of wealth is more equal as it helps to reduce the income gap between the rich and the poor. However, it may be less efficient as it affects the incentives for the wealthy to work and invest, potentially reducing overall economic growth.

Question 6

Government policies designed to equalize the distribution of economic well-being include i) the welfare system
Ii) unemployment insurance
Iii) progressive income tax

Accepted Answer

The government policies designed to equalize the distribution of economic well-being include the welfare system, unemployment insurance and progressive income tax. The welfare system provides financial assistance to those who are unable to support themselves, while unemployment insurance provides temporary financial assistance to those who have lost their jobs. Progressive income tax refers to a taxation system where people with higher incomes pay a larger percentage of their income in taxes. All three policies aim to reduce income inequality and provide support to those who are in need, thereby equalizing the distribution of economic well-being.

Question 7

A certain state legislature is considering an increase in the state gasoline tax. Representative Campbell argues that an increase in the gasoline tax would harm low-income drivers disproportionately. Representative Richards responds by saying that low-income drivers own smaller cars that use less gasoline, and that low-income drivers therefore would not be harmed disproportionately.

Accepted Answer

The answer of A certain state legislature is considering an...

Question 8

Government policies resulting in reduced efficiency include i) the welfare system
Ii) unemployment insurance
Iii) progressive income tax

Accepted Answer

All three policies can potentially reduce efficiency. The welfare system and unemployment insurance may reduce the incentive to work, while a progressive income tax can discourage high earners from working more or investing.

Question 9

Senator Jackson argues that replacing the federal income tax with a national sales tax would increase the level of output. Senator Feldman objects that this policy would benefit the rich at the expense of the poor.

Accepted Answer

Senator Jackson's argument that replacing the federal income tax with a national sales tax would increase the level of output is primarily about efficiency. On the other hand, Senator Feldman's objection that this policy would benefit the rich at the expense of the poor is primarily about equality. Therefore, the best answer is D, with Senator Jackson's argument being primarily about efficiency and Senator Feldman's argument being primarily about equality.

Question 10

Which of the following phrases best captures the notion of efficiency?

Accepted Answer

Efficiency refers to the ability to achieve maximum output with minimum input or waste. Option C, "minimum waste," best captures this notion. The other options are more related to equality and fairness rather than efficiency.

Question 11

When the government implements programs such as progressive income tax rates, which of the following is likely to occur?

Accepted Answer

Progressive income tax rates increase equality by redistributing wealth from higher income individuals to lower income individuals. However, it can also decrease efficiency by reducing the incentives for higher income individuals to work more or invest in the economy. Additionally, it can create disincentives for businesses to invest and expand, resulting in a slower economic growth.

Question 12

When government policies are enacted,

Accepted Answer

The answer of When government policies are enacted,
...

Question 13

Which of the following is true?

Accepted Answer

Efficiency and equality refer to different aspects of the economy. Efficiency focuses on maximizing the size of the economic pie, while equality focuses on the distribution of the pie among individuals. These concepts are not necessarily mutually exclusive, but achieving one often comes at the expense of the other.

Question 14

Senator Brown wants to increase taxes on people with high incomes and use the money to help the poor. Senator Johnson argues that such a tax will discourage successful people from working and will therefore make society worse off. An economist would say that

Accepted Answer

An economist would acknowledge that there are tradeoffs between equity (fairness in the distribution of resources) and efficiency (how well resources are allocated to maximize benefits). Increasing taxes on high earners could potentially reduce their work incentives and negatively affect economic growth. However, providing assistance to the poor could improve equity and help mitigate poverty. Therefore, a good decision would need to weigh both the potential benefits and costs of implementing such a tax policy.

Question 15

When the government redistributes income from the wealthy to the poor,

Accepted Answer

When the government redistributes income from the wealthy to the poor, equality is improved because there is less income inequality. However, efficiency is not necessarily improved as it may discourage some people from working hard or investing. Therefore, the best choice is B.

Question 16

When the government redistributes income from the wealthy to the poor,

Accepted Answer

Redistributing income from the wealthy to the poor can lead to decreased incentives for both groups to work hard. Wealthy individuals may work less because a larger portion of their income is taken away, while poor individuals may work less because they receive income without needing to work for it. This can result in a decrease in overall productivity and the production of fewer goods and services.

Question 17

When society gets the most it can from its scarce resources, then the outcome is called

Accepted Answer

The outcome of getting the most from scarce resources is called efficiency. When resources are allocated efficiently, there is no way to make any one person or group better off without making someone else worse off. Therefore, society is using its resources in the best way possible to achieve its goals.

Question 18

Which of the following words and phrases best captures the notion of equality?

Accepted Answer

The notion of equality is captured by the idea of sameness, where everyone is treated the same and given equal opportunities regardless of their background or circumstances. Minimum waste and efficiency relate more to practical concerns, while maximum benefit is more focused on achieving a positive outcome rather than ensuring equal treatment.

Question 19

The terms equality and efficiency are similar in that they both refer to benefits to society. However they are different in that

Accepted Answer

Equality refers to distributing benefits or resources uniformly across society, while efficiency refers to maximizing the benefits that can be obtained from the limited or scarce resources available. So, A is the best choice because it accurately reflects the difference between the two concepts. Choices B, C, and D are incorrect because they mix up the meanings of the concepts or aren't accurate descriptions of the differences.

Question 20

A typical society strives to get the most it can from its scarce resources. At the same time, the society attempts to distribute the benefits of those resources to the members of the society in a fair manner. In other words, the society faces a tradeoff between

Accepted Answer

The society's tradeoff between efficiency and equality reflects the tension between maximizing the overall output of goods and services and ensuring that the benefits of that output are distributed fairly among the members of the society. While achieving maximum efficiency may result in unequal distribution of resources, striving for complete equality may reduce incentives for innovation and overall economic growth. Thus, a balance between the two is necessary for a society to function effectively.

Quiz 1: Ten Principles of Economics

A likely effect of government policies that redistribute income and wealth from the wealthy to the poor is that those policies

A likely effect of government policies that redistribute income and wealth from the wealthy to the poor is that those policies

As a result of a successful attempt by government to cut the economic pie into more equal slices,

When the government attempts to improve equality in an economy the result is often

Suppose the government taxes the wealthy at a higher rate than it taxes the poor and then develops programs to redistribute the tax revenue from the wealthy to the poor. This redistribution of wealth

Government policies designed to equalize the distribution of economic well-being include i) the welfare system Ii) unemployment insurance Iii) progressive income tax

Government policies resulting in reduced efficiency include i) the welfare system Ii) unemployment insurance Iii) progressive income tax

Senator Jackson argues that replacing the federal income tax with a national sales tax would increase the level of output. Senator Feldman objects that this policy would benefit the rich at the expense of the poor.

Which of the following phrases best captures the notion of efficiency?

When the government implements programs such as progressive income tax rates, which of the following is likely to occur?

When government policies are enacted,

Which of the following is true?

Senator Brown wants to increase taxes on people with high incomes and use the money to help the poor. Senator Johnson argues that such a tax will discourage successful people from working and will therefore make society worse off. An economist would say that

When the government redistributes income from the wealthy to the poor,

When the government redistributes income from the wealthy to the poor,

When society gets the most it can from its scarce resources, then the outcome is called

Which of the following words and phrases best captures the notion of equality?

The terms equality and efficiency are similar in that they both refer to benefits to society. However they are different in that

A typical society strives to get the most it can from its scarce resources. At the same time, the society attempts to distribute the benefits of those resources to the members of the society in a fair manner. In other words, the society faces a tradeoff between