Using the "It's not fair if the result isn't fair" principle of fairness, an income tax designed to transfer wealth from the rich to the poor
A) increases efficiency and equity.
B) increases efficiency and does not affect equity.
C) decreases efficiency and increases equity.
D) decreases efficiency and equity.
C
Economics
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If households save $0.20 of each additional dollar of increased income and spend the rest, the expenditure multiplier will be
A) 1.25. B) 2. C) 5. D) 8.
Economics
To attract more aggressive bidding in a common-value auction, as an auctioneer, you should
a. Release no information about the item b. Do not let the bidders examine the item closely c. Do not release any adverse information about the item d. Release maximum information about the item, even if it is adverse
Economics