If the Gini coefficient is zero, then we know
a. the value of the Lorenz curve must be one
b. the income distribution is perfectly equal
c. the richest quintile receives all the income
d. the income in the economy has not changed
e. the Lorenz curve lies above the diagonal
B
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According to the new classical view, when the actual price level is greater than the expected price level
A) aggregate output is above the full employment level. B) aggregate output is below the full employment level. C) the aggregate supply curve will slope downward. D) the coefficient a is equal to zero.
The short-run industry supply curve is found by
A) taking the inverse of the industry demand curve. B) horizontally summing the average total cost curve of all firms in the industry. C) adding up the quantities supplied at each price by each firm in the industry. D) adding up the quantities supplied at each price by each of the firms in the industry that are making a profit.
The free-rider problem makes a good profitable to provide by a private firm.
Answer the following statement true (T) or false (F)
Figure 34-2
?
In Figure 34-2, if the United States and Mexico are negotiating to trade wheat for petroleum,
A. the United States must receive more than 1 2/3 units of petroleum for a unit of wheat. B. Mexico must receive more than 1 2/3 units of petroleum for a unit of wheat. C. the limits of the agreement are between 1 unit of wheat for 2/3 unit of petroleum for the United States and 1 unit of wheat for 1 1/2 units of petroleum for Mexico. D. if the agreement is formalized at 1 unit of wheat for 1 unit of petroleum, then Mexico will benefit from the trade but the United States will not.