The Government Has Just Passed a Law Requiring That All

question 91

Multiple Choice

The government has just passed a law requiring that all residents earn the same annual income regardless of work effort.This law is likely to

• A)increase efficiency and increase equality.
• B)increase efficiency but decrease equality.
• C)decrease efficiency but increase equality.
• D)decrease efficiency and decrease equality.

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Definitions:

Student Loan

A type of loan designed to help students pay for higher education and its related costs, such as tuition, books, and living expenses.

Compounded Semiannually

Interest calculation technique where interest is added to the principal sum twice a year, enhancing the base amount for future interest calculations.

Present Value

The existing value of a future amount of money or series of payments, factoring in a chosen rate of return.

Beginning of Every Quarter

This refers to the start of each three-month period in a year, often used in financial contexts for reporting and interest calculation.