The Lorenz curve maps:
A. GDP per capita against what people really earn by quintile.
B. each quintile of the population in order of income-earned against the average income earned by those people.
C. the cumulative percentage of the population against the cumulative percentage of income earned by those people.
D. None of these describes what the Lorenz curve maps.
Answer: C
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Price discrimination exists:
A. only in perfectly competitive markets. B. because sellers try to exploit differences in customers’ willingness to pay. C. in all industries, regardless of market structure. D. only when demand is inelastic.
________ is the notion that there is a limit to the information that an economic agent, such as a manager, can comprehend and act on
a. Core competency b. Outsourcing c. Economies of scope d. Bounded rationality
An inflation rate of 8% would erode the purchasing power of the dollar by:
A. 8.0 percent B. 7.4 percent C. 4.4 percent D. 12.5 percent
Additional economic growth should be pursued when:
A. scarcity exists. B. new technologies are discovered. C. the marginal costs of growth are less than the marginal benefits. D. the marginal costs of growth exceed the marginal benefits.