Your textbook argues that the phrase "the distribution of income" is misleading because
A) income is not created in a market economy, only wealth is.
B) it suggests that income is not earned in process of its creation and can simply be parceled out any which way policymakers wish.
C) income in the form of wages and salaries can be negative, and therefore cannot be distributed.
D) it is only related to ethical rather than economic considerations.
B
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Assume that the supply curve for a commodity shifts to the left and the demand curve shifts to the right, both by the same degree. Then, in comparison to the initial equilibrium, the new equilibrium will be characterized by:
A) a lower price and the same quantity. B) the same price and quantity. C) a lower price and quantity. D) a higher price and the same quantity.
Most economists believe that only a small gap between the wages of white males and the wages of other groups is due to education. Most of the gap is explained by discrimination
Indicate whether the statement is true or false