A cause of the unequal distribution of income in the United States is:

A. Differences in work preferences and risks

B. Differences in noncash transfers

C. High expenditures for social insurance

D. A low benefit-reduction rate for income

A. Differences in work preferences and risks

Economics

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The cross elasticity of demand for complementary goods must

a. be greater than one b. be less than one c. be zero d. exceed zero e. be negative

Economics

Suppose the government levies a corrective tax on firms that pollute in order to limit the quantity of pollution. Under this policy, does the demand curve for pollution rights determine the quantity of pollution, or does it determine the price of pollution?

Economics