If growing income inequality results from or encourages more rent seeking that, as a whole, make society worse off, this will
A) increase the size of the economic pie despite the income inequality.
B) decrease the size of the economic pie.
C) not change the size of the economic pie because the rent-seeking behavior will benefit enough parties to completely offset the effects of the increases in income inequality.
D) result in complete income inequality as rent seeking continues to occur in the future.
B
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Which of the following is true?
A) MSB = MB + Marginal external benefit. B) MB = Marginal external benefit - MSB. C) MB = Marginal external benefit + MSC. D) MSB = Marginal external cost - marginal external benefit. E) MSB = MB + Marginal external benefit - Marginal external cost.
The velocity of circulation of money is typically greater than 1
A. under no circumstances. B. only if the unemployment rate is relatively low. C. because the same money is exchanged a number of times each year. D. because of inflation.