If substantial income mobility is present, then there is considerable movement of individuals up and down the income ladder over time.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 2Equilibrium wage will increase if quantity of labor demanded rises.
Indicate whether the statement is true or false
QUESTION 3Government rules and regulations can affect
A) market prices.
B) the strategy of business.
C) the costs of factors of production.
D) all of these choices.
QUESTION 4Dramatically redistributing income from the rich to the poor could make society worse off.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 5The equilibrium wage rate is 10 per hour, and the labor hired at that wage is 100 . If the wage rate rises to 11, market forces will push the wage rate further up.
Indicate whether the statement is true or false
QUESTION 6New social regulations usual are created as barriers to entry.
Indicate whether the statement is true or false
QUESTION 7The principle of diminishing marginal utility can potentially be used to support policies that redistribute income. This principle suggests that increases in income for an individual will generate less additional happiness the higher the level of income.
a. True
b. False
Indicate whether the statement is true or false
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