If Oscar's MPC is 0.95 and he earns an additional $2,000, how much would he spend?

If society can produce more of one good but must forgo some of another good to do so, it is definitely achieving

A) both production and allocative efficiency. B) only production efficiency. C) only allocative efficiency. D) neither production nor allocative efficiency. E) None of the above answers is correct because when society must forgo another good to produce more of one good, then society might be production efficient or it might be allocatively efficient.

Refer to the Article Summary. The article discusses income inequality, and for some people this means a more equitable distribution of income is needed in the economy. What is meant by a more equitable distribution of income?

A) Income distributed based on skill levels B) a more productively efficient distribution of income C) a more allocatively efficient distribution of income D) a more fair distribution of income