If income is distributed equally, the
A. Gini coefficient is greater than zero.
B. Line of equality sags below the Lorenz curve.
C. Lorenz curve is a straight line.
D. Lorenz curve sags below the line of equality.
Answer: C
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If consumers but not producers expect that the price of soda will rise in November, the
A) supply of soda in October will increase. B) demand for soda in October will decrease. C) demand for soda in October will increase. D) supply of soda in October will decrease.
Between 1929 and 1933, nominal interest rates ___, and real interest rates ___
a. rose, rose b. rose, fell c. fell, rose d. fell, fell
World War II led to a dramatic increase in economic growth in the United States because
a. the war caused the U.S. to move along its production possibilities frontier away from consumer goods and towards military goods b. the economy was already at close to full employment c. there were unemployed resources in the U.S. economy prior to the war d. the economy shifted production towards more profitable consumer goods during the war e. the opportunity cost of producing military goods increased considerably during the war years
The opportunity cost of leisure is impossible to measure because we cannot measure leisure time in dollars
a. True b. False Indicate whether the statement is true or false