Category: Income Inequality

A. the return to any factor of production that is in fixed supply
B. the profit earned by the owner of any housing unit.
C. the amount paid each year by a tenant for an apartment
D. any profit earned by stockholders when they sell their stock

A. redistributing income from rich to poor because this is what the members of society would choose to do if they were behind a veil of ignorance
B. redistributing income from rich to poor because due to the diminishing marginal utility of income, taking a pound from the rich reduces their utility by less than the gain in utility generated by giving a pound to the poor
C. allowing each individual to maximize their own utility without interference from the government
redistributing income from rich to poor because this would maximize the well-being of the worst-off person in society

A. generates a smaller disincentive to work than most alternative anti-poverty policies.
B. reduces the cost to the government of fighting poverty
C. would not provide benefits to lazy people
D. ensures that the poor actually receive what the government thinks they need does all these answers.

A. specific
B. Direct
C. Ad valorem
D. Excise duty

A. reduce the supply of labour.
B. increase the demand for labour
C. increase the supply of labour
D. have no effect on the supply of labour

A. occupational differentials
B. search differentials
C. job differentials.
D. compensating differentials

A. the idea that people should consider policy as if behind a veil of ignorance as to what their circumstances might be in society, and the idea that as long as there is no theft then there is no need for governments to intervene and redistribute income.
B. the idea that people should consider policy as if behind a veil of ignorance as to what their circumstances might be in society, and the idea that people will then be particularly concerned about the possibility that they might find themselves at the bottom of the income distribution
C. the idea that people a veil of ignorance as policy as if behind a veil of ignorance as to what their circumstances might be in society, and the ignorant people should be looked after
D. the idea that everyone in society should have an equal income

A. unskilled workers if the demand for labour is relatively inelastic
B. unskilled workers if the demand for labour is relatively elastic
C. skilled workers if the demand for labour is relatively elastic
D. skilled workers if the demand for labour is relatively inelastic

A. transitory income is a good measure of the distribution of living standards
B. none of these answers
C. permanent income is a good measure of the distribution of living standards.
D. life-cycle income is a good measure of the distribution of living standards.
E. current annual income is a good measure of the distribution of living standards.

A. total labour cost
B. the marginal product
C. the price of the product
D. the wage rate