An equal distribution of income would yield a Lorenz curve that is a
A. line lying directly on the horizontal axis.
B. line lying directly on the vertical axis at 100%.
C. 45-degree line between 0 and 100%.
D. line lying directly on the vertical axis at 0%.
Answer: C
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Recessions are periods of:
A) leftward shifts in labor supply. B) rightward shifts in labor supply. C) rightward shifts in labor demand. D) leftward shifts in labor demand.
?Each economic model can be applied to many different real-world problems.
Answer the following statement true (T) or false (F)
Buying a monopoly from the existing owner does not ensure an economic profit because
A) the market for monopolies is a monopoly. B) competition among buyers drives up the cost of buying the firm. C) profits equal zero in the long run anyway. D) of the deadweight loss triangle.
In a Stackelberg oligopoly
A) the leader moves first, and the follower chooses its price in the second stage of the game. B) the leader moves first, and the follower chooses its output in the second stage of the game. C) both firms act simultaneously, but one chooses price and the other output level. D) there is no Nash equilibrium.