Which of the following statements is true?
A) Maximum social surplus implies equity.
B) Pareto efficiency implies equity.
C) Taxation causes redistribution of wealth among the members in a society.
D) Market prices act as signals that result in equal distribution of income and wealth in the society.
C
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Compensation paid to employees represented ________ of GDP for the United States in 2014
A) about 5 percent B) approximately 15 percent C) 35 percent D) more than 50 percent
In 2002, the United States imposed restrictions on the importation of steel into the United States. The open-economy macroeconomic model shows that such a policy would
a. lower the real exchange rate and increase net exports. b. lower the real exchange rate and have no effect on net exports. c. raise the real exchange rate and decrease net exports. d. raise the real exchange rate and have no effect on net exports.