If a tax was instituted such that every dollar collected in taxes from high income households resulted in a distribution of $.80 to low income households
A) efficiency and equality of incomes would both decrease.
B) equality of incomes would increase but efficiency would decrease.
C) efficiency would increase but equality of incomes would decrease.
D) efficiency and equality of incomes would both increase.
B
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The United States can be called a net debtor nation. This means that
A) the value of U.S. assets held abroad is worth less than the value of foreign assets held in the U.S. B) the U.S. government owes more money than it takes in. C) the value of the U.S. currency is less than the value of currencies for our main trading partners. D) the U.S. manufactures more goods abroad than it manufactures domestically.
A firm using two inputs, X and Y, is using them in the most efficient manner when
A) MPx = MPy. B) Px = Py and MPx = MPy. C) MPx/Py = MPy/Px. D) MPx/MPy = Px/Py.