The Lorenz curve:
A. plots graphically the poverty rate over time.
B. is located closer to the diagonal today than it was in 1975.
C. plots graphically the distribution of income.
D. is located farther from the diagonal when income is defined to include the value of noncash
transfers.
Answer: C
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When there is a cut in payroll taxes, there is a(n) ________ in the tax wedge that lowers the cost of labor. This tax cut will ________ the quantity of labor demanded and ________ the quantity of labor employed
A) increase; increase; increase B) decrease; increase; decrease C) decrease; increase; increase D) decrease; decrease; increase E) increase; decrease; decrease
Refer to Table 20-5. Consider the following values of the consumer price index for 2015 and 2016. The inflation rate for 2016 was equal to
A) 215 percent. B) 21.5 percent. C) 8.0 percent. D) 3.9 percent.
A bottle of wine manufactured in Paris, France cost 45 euros. What is the dollar value of the wine if the exchange rate is $0.80 per euro?
A) $36.00 B) $56.25 C) $40.00 D) None of these dollar values is correct.
If marginal cost of an additional unit of output is greater than average cost, then average cost will rise.
Answer the following statement true (T) or false (F)