Caroline earns more than John. Under a new tax system, some of the taxes paid by Caroline would go to John. A libertarian would
a. support the system because an extra dollar earned by Caroline would be worth less to her than an extra dollar given to John.
b. oppose the system if it redistributed income in the presence of equal opportunity.
c. oppose the system because an extra dollar earned by Caroline would be worth more to her than an extra dollar given to John.
d. support the system if it maximized the well-being of the poorest member of society.
b
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In the above figure, at the equilibrium price and quantity, producer surplus is ________
A) $90 B) $60 C) $45 D) $30
An important factor that increased international capital flows in the latter part of the 1800s was
A) the creation of the International Monetary Fund. B) the creation of numerous regional trade agreements. C) the rapid rate of East Asian economic growth. D) technological innovations. E) the creation of the World Bank.