Which of the Following Would Cause the Level of Income

question 8

Multiple Choice

Which of the following would cause the level of income to change by the greatest amount,ceteris paribus?

• A)An increase in Social Security payments of $10 billion.
• B)A reduction in personal income taxes of $10 billion.
• C)An increase in defense spending of $10 billion.
• D)All of the other choices have equal impacts on the level of income.

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Definitions:

Affirmative Action

Policy measures designed to increase the representation of minorities and women in fields from which they have historically been excluded, through proactive recruitment and opportunities.

Preferential Treatment

The act of giving favorable treatment or advantages to a person or group over others, often based on personal biases or for strategic reasons.

Symbolic Ethnicity

A nostalgic allegiance to the culture of the immigrant generation, or that of the old country, that is not usually incorporated in everyday behavior.

Situational Ethnicity

The concept that one's ethnic identity can be fluid and change in different social contexts.