Which of the following is NOT correct regarding the theories of income distribution?
A) Dealing with how income ought to be distributed is a normative issue.
B) The productivity standard for the distribution of income is stated "to each according to what they produce."
C) The egalitarian principle of income distribution is "to each exactly the same."
D) Dealing with how income should be distributed is a positive economic issue.
D
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What are the biggest advantages the U.S. has over the EU in terms of being an Optimum Currency Area?
A) low mobility of labor, higher labor productivity, lower level of intra-regional trade B) high unionization of U.S. Labor force C) high mobility of labor force, more transfer payments between regions D) higher uniformity of population's taste in consumption E) more specialized labor force and natural resource advantages
The excess burden or deadweight loss of a tax refers to the
a. increase in product price as a result of the tax. b. growth in government funded programs as a result of the revenue generated by the tax. c. loss of disposable income consumers suffer from the tax. d. reduction in gains from mutually beneficial exchanges that are eliminated as a result of the tax.