Inferior goods have an income elasticity of demand that is
a. positive
b. negative
c. 0
d. greater than 1 in absolute value
e. equal to 1 in absolute value
B
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The Lorenz curve and the Gini coefficient are different in that the Lorenz curve
a. includes income earned in foreign countries while the Gini coefficient only includes domestic income b. is much more accurate a reflection of income distribution than the Gini coefficient c. is a graphic representation and the Gini coefficient is a numerical measurement of income distribution d. includes income from government programs while the Gini does not e. compares different countries while the Gini only reflects data within a country
There is a flexible exchange rate system and only two countries in the world, the United States and Mexico. An increase in income growth in Mexico relative to income growth in the United States will cause the
A) dollar to appreciate. B) peso to depreciate. C) dollar to depreciate. D) a and b E) There is not enough information to answer the question.
Decision making in the corporate hierarchy is a lot more spread out in _______ while CEOs are much better paid in _______.
A. the United States than in Japan; the United States than in Japan B. Japan than in the United States; Japan than in the United States C. the United States than in Japan; Japan than in the United States D. Japan than in the United States; the United States than in Japan
Refer to the information provided in Figure 12.5 below to answer the question(s) that follow. 
Figure 12.5
Refer to Figure 12.5. A firm produces hula hoops in a perfectly competitive market and currently produces and sells 100 per week. At this production quantity of 100 per week, society would be best served
A. if the price was higher than $10 per hula hoop. B. if the price was lower than $10 per hula hoop. C. if the price remained at $10 per hula hoop. D. Society cannot be best served at a production quantity of 100, regardless of the price per hula hoop.