MICROECONOMICS (LL)W/ACCESS >IC<
20th Edition
ISBN: 9781308103341
Author: McConnell
Publisher: MCG/CREATE
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Chapter 21, Problem 1P
To determine
The Money received by each individual.
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Define economics in terms of wealth
Which of the following is an example of the circular flow of income that shows the interdependence of households and firms?
Group of answer choices
Firms in the factor markets pay households in the form of wages, interest, rent and profit for the resources that households supplied.
Households supply their resources to the firms in the product markets and, in turn, demand in the factors market the goods and services produced by firms.
Households demand their resources from firms in the factors’ market and, in turn, supply in the product market the goods and services produced by firms.
Firms supply resources that households demand in the factors’ market and, in turn, provide households with the goods and services produced for the product market.
Mark Zuckerberg of Facebook and Elon Musk of Space X have taken risks to build to their businesses and been successful at it. The fundamental premise for their success mostly hinges on the ownership of private property and free market forces. For billionaires like them who have made their wealth mostly based on their own effort and perseverance, would it be fair to impose high income tax on them to redistribute their wealth to help the poor?
Chapter 21 Solutions
MICROECONOMICS (LL)W/ACCESS >IC<
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- Using the diagram above, which of the following is true? a. In country S the poorest 30 percent of the population receive 13 percent of the available income in country S. b. In country T the richest 10 percent of the population receive 23 percent of the available income in country T. c. In country S the richest 10 percent of the population receive 55 percent of the available income in country S. d. Country S has a more equal distribution of income than does country T. e. None of the above is true.arrow_forwardAssume that you want to decide whether Country A or Country B to live You have only information about cumulative percentage of income distribution functions of (14)/(15)x^(2)+(1)/(15)x for country A and (11)/(12)x^(2)+(1)/(12)x for country B. A)Which country do you prefer and why? B)Prove your decision numerically,graphically, and with respect to relevant economics theory?arrow_forwardProblem 4 Assume that total output is determined by the formula: Total Output = Number of Workers x Productivity (a) If the workforce is growing by 1 percent a year but productivity doesn’t improve, how fast can output increase? (b) If productivity increases by 3 percent and the number of workers increases by 1 percent a year, how fast will output grow? Problem 5 According to the News Wire “Inequality,” what is the average per capita income in nations where the highest-income decile gets (a) over 45 percent of total income? (b) less than 30 percent of total income?arrow_forward
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