Which of the following is the most important reason for growing inequality in the income distribution in the United States?
A. an increase in demand for highly educated workers
B. inheritances
C. discrimination
D. a steady increase in tuition and fees for a college education
Answer: A
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If the government began providing free textbooks to college students who would otherwise have bought their books from the private sector, the government's action would result in
A) a Ricardian dilemma. B) a direct expenditure offset. C) an increase in real Gross Domestic Product (GDP). D) a reduction of the government deficit.
If the legislature has a line-item veto on a bureau's budget, the bureau
a. can no longer present its entire budget as a package deal for provision of services b. will have more power than if the legislature used an overall budget ceiling c. will be able to supply its output to the legislature as a monopolist d. will try to discourage budget cuts by threatening to make cuts that will cause the legislature the least political trouble e. will be free to pursue its own overall objectives