If everyone earned the same income, the Lorenz curve would be
A. the horizontal axis.
B. a straight line from the origin at a 45-degree angle.
C. very bowed from the diagonal.
D. a rectangular hyperbola.
Answer: B
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A tax on buyers will cause the equilibrium price paid by the consumer to ________ and the equilibrium quantity to ________.
A. increase, decrease B. decrease, decrease C. decrease, increase D. increase, increase
Within the Keynesian aggregate expenditures model, if the economy is below equilibrium, then there will be:
A. an increase the demand for goods and services. B. an increase in real GDP. C. lower interest rates, which will stimulate aggregate demand and keep the economy at full employment. D. a lower price level, which will quickly guide the economy to full-employment equilibrium.
When disposable income is 3750, the APC is about
A. .3.
B. .45.
C. .6.
D. .75.
What is likely to happen if many new businesses enter a market?
Industry profits will increase Industry capacity will fall Competitive rivalry will intensify Barriers to entry will rise