Assume That an Economy Is in Equilibrium When Technological Progress

question 42

Multiple Choice

Assume that an economy is in equilibrium when technological progress causes an increase in total factor productivity.Once the economy has adjusted to its new equilibrium,and assuming that the supplies of capital and labor remain unchanged,which of the following has increased?

• A)the real wage
• B)the share of capital income in national income
• C)the share of labor income in national income
• D)all of the above
• E)none of the above

Distinguish between different types of tax systems and their impact on income distribution.

Comprehend the funding sources and beneficiaries of the Social Security system.

Understand the mechanism and purpose of the Supplemental Nutrition Assistance Program (SNAP).

Recognize the role of unemployment benefits and the criteria for their receipt.

---

Definitions:

Real Income

The income of an individual or group after adjusting for inflation, reflecting the true purchasing power of the income.

Farm Households

Families living and working on farms, typically involved in agricultural practices and production.

Prices Paid

The amount of money expended by consumers or businesses to purchase goods or services.

Acreage Allotments

Regulations or programs that set limits on the amount of land that can be used for the cultivation of certain crops, often to control supply and stabilize market prices.