Draw and explain a Lorenz curve.
What will be an ideal response?
In the above figure, the curve displaying the actual money income distribution is the Lorenz curve. The farther the Lorenz curve is from the 45-degree line that shows what the curve would be if money income were equally distributed, the more unequal is the actual distribution of income.
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Which of the following groups tends to have the highest unemployment rate in the United States?
a. African American teenagers b. Workers, age 25 or older, who are college graduates c. White women d. Workers, 25 years of age or older, who are high school dropouts e. White teenagers
Almost all variation in living standards is attributable to differences in countries'
a. population growth rates. b. productivity. c. systems of public education. d. taxes.
Inflation is defined as:
a) An increase in the price of expensive items, such as cars. b) An increase in relative prices. c) An increase in the average level of prices. d) The level of prices at full-employment.
The diamond/water paradox helps to illustrate the concept of marginal value.
Answer the following statement true (T) or false (F)