The market demand curve for a good is found by
a. adding up the quantities demanded by all consumers at different prices of that good
b. adding up the quantities demanded by all consumers at different incomes
c. adding up the maximum price each consumer is willing to pay for each possible quantity of the good
d. varying consumers' total income and determining what prices they are willing to pay
e. vertically summing the individual consumers' demand curves
A
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A currency drain occurs when the
A) Fed increases the required reserve ratio. B) Fed sells U.S. government securities. C) non-bank public increases its holdings of currency outside the banking system. D) banks reduce the number of loans they create with their excess reserves. E) Fed buys U.S. government securities.
Which of the following is an efficiency argument against the welfare state?
a. High marginal tax rates create large disincentives to work and lower overall production. b. It is fairer to tax those with higher incomes than those with lower incomes. c. The government has no right to force those with higher incomes to pay more taxes than those with lower incomes. d. Principles of social justice argue that society should take care of the poor.