Which statement is true?
A. Income is more evenly distributed along curve X than curve Y.
B. Income is more evenly distributed along curve Y than curve X.
C. Income is equally distributed along curves X and Y.
D. It is impossible to determine income distribution by observing these curves.
B. Income is more evenly distributed along curve Y than curve X.
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In free exchange among two individuals the position on the contract curve finally arrived at will, among other things, depend on: I. The bargaining strength of each individual. II. The initial endowments of the individuals. III. The individuals' preferences. Which of these correctly completes the statement?
a. Only III. b. Only II. c. I and III, but not II. d. II and III, but not I. e. I, II, and III.
In the short run, a surplus federal budget _____
a. reduces national saving b. boosts domestic saving c. stimulates aggregate demand d. promotes economic growth in the long run e. increases the federal debt
Suppose the market-clearing interest rate on loans is 12%, but law-makers impose an 8% interest rate ceiling. The new law will tend to
A) increase the supply of loans. B) decrease the supply of loans. C) increase the demand for loans. D) decrease the demand for loans. E) do none of the above.
GDP includes:
A. intermediate but not final products. B. substitute but not intermediate products. C. final but not intermediate products. D. complementary but not intermediate products.