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Question #1: As a result of the tradeoff between income equality and incentives to work, an optimal redistribution policyA. will rarely fall short of a full egalitarian society.B. is consistent only with transfers to the middle class.C. always falls short of a full egalitarian society.D. can never be funded through taxes on wage income.Question #2: The amount of a commodity that an individual is consumingA. is affected only by prices.B. affects the rate at which he or she is willing to trade.C. is affected only by income.D. won’t affect the marginal rate of substitution.Question #3: Technology is an important factor in explaining the high incomes of superstars becauseA. technology is available that can limit access to the superstars.B. only technologically literate superstars can earn super incomes.C. technology accounts for differences in incomes within all occupations.D. technology makes it possible for the best producer to supply every customer at low cost.Thanks so much.
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