The "big tradeoff" refers to the point that governmental redistribution of income causes
A) less efficiency because it weakens incentives to work.
B) less efficiency because it strengthens incentives to work.
C) more efficiency because it weakens incentives to work.
D) more efficiency because it strengthens incentives to work.
A
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Suppose the market for grass seed is expressed as Demand: QD = 100 - 2p Supply: QS = 3p Price elasticity of supply is constant at 1. If the supply curve is changed to Q = 8p, price elasticity of supply is still constant at 1. Yet, with the new supply curve, consumers pay a larger share of a specific tax. Why?
What will be an ideal response?
Jimmy Earl, a farmer, sells $20 worth of peanuts to a factory that manufactures peanut butter, which sells it for $45 . Which of the following is true?
a. Total value added is $65 b. The value of final sales is $65. c. The value of final sales is $25. d. Total value added is $25. e. Total value added is $45.