If a Society's Scarce Resources Are Allocated by the Government,which

question 66

Multiple Choice

If a society's scarce resources are allocated by the government,which of the following is most likely to result?

• A)Only those who circumvent the government's rules will prosper.
• B)Under a government allocation,no one will have to do without.
• C)It provides an incentive to be a member of government and thus help determine the allocation rules.
• D)Under a government allocation,some will have to do without,but the government guarantees that resource allocations are fair.
• E)Government allocation provides incentives to increase production and efficiency and to create value.

Analyze various perspectives and proposals for income redistribution, including negative income taxes and the Earned Income Tax Credit.

Evaluate the impact of government intervention on income inequality and the economy's resource allocation.

Understand libertarian views on equal opportunities versus equal outcomes and their policy implications.

Understand the concept of income distribution and poverty rate.

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Definitions:

Prices

The amount of money expected, required, or given in payment for goods or services.

Budget Line

An illustrated chart detailing every possible pair of two items that could be acquired given a certain financial limit at fixed prices.

Price of A

Represents the amount of money required to purchase a specific item or service A.