Which of these actions will occur to the budget constraint when an individual's income increases?
a. shifts outward
b. shifts backward
c. rotates clockwise
d. cannot be determined from the information given
a
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The optimum tariff is most likely to apply to
A) a small tariff imposed by a small country. B) a small tariff imposed by a large country. C) a large tariff imposed by a small country. D) a large tariff imposed by a large country. E) an ad valorem tariff on a small country.
(I) Positive economics cannot determine how much income inequality should be present in a country. (II) Critics of government action to reduce income inequality argue that modifying the market process of income determination may create perverse incentives and hurt wealth creation
a. Both I and II are true. b. Both I and II are false. c. I is true; II is false. d. I is false; II is true.