Economics Mcqs

A. exaggerate the inequality of living standards
B. could exaggerate or understate the inequality of living standards depending on whether the transitory shocks are positive or negative
C. understate the inequality of living standards
D. accurately represent the true inequality of living standards

A. all of these answers
B. libertarianism
C. utilitarianism
D. none of these answers

A. utilitarianism, liberalism, libertarianism
B. All three political philosophies argue for similar degree of income redistribution
C. liberalism, libertarianism, utilitarianism
D. libertarianism liberalism, utilarianism
E. libertariansim, utilitarianism, libertarianism

A. the idea that people should consider policy as if behind a veil of ignorance as to what their circumstances might be in society, and the idea that as long as there is no theft then there is no need for governments to intervene and redistribute income.
B. the idea that people should consider policy as if behind a veil of ignorance as to what their circumstances might be in society, and the idea that people will then be particularly concerned about the possibility that they might find themselves at the bottom of the income distribution
C. the idea that people a veil of ignorance as policy as if behind a veil of ignorance as to what their circumstances might be in society, and the ignorant people should be looked after
D. the idea that everyone in society should have an equal income

A. unskilled workers if the demand for labour is relatively inelastic
B. unskilled workers if the demand for labour is relatively elastic
C. skilled workers if the demand for labour is relatively elastic
D. skilled workers if the demand for labour is relatively inelastic

A. generates a smaller disincentive to work than most alternative anti-poverty policies.
B. reduces the cost to the government of fighting poverty
C. would not provide benefits to lazy people
D. ensures that the poor actually receive what the government thinks they need does all these answers.

A. making spending decision but not labour-supply decision.
B. making both spending and labour-supply decisions
C. considered to be ‘poor’ but not for those who are considered to be ‘rich’
D. making labour-supply decisions but not spending decisions.

A. will have no effect on labour supply
B. will decreases labour supply
C. could cause either an increases or a decrease in labour supply
D. will increase labour supply.

A. income effect is zero
B. substitution effect outweighs the income effect
C. income effect outweighs the substitution effect
D. income effect and the substitution effects are equal

A. remains constant
B. increases since the cost of forgoing one hour of work increases
C. decreases since the customer now has more income to spend
D. may increase of decrease depending on the individual’s preferences.