Some economists criticize the Lorenz curve because it
A. measures unreported income earned in the underground economy.
B. uses after-tax income when pre-tax income is more appropriate.
C. includes too many things in measuring income, such as food stamps, housing aid, and other government programs.
D. does not account for the effect of age on a family's income.
Answer: D
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Horizontal contracts often result in
a. Higher prices b. Lower prices c. Unchanged prices d. None of the above
At which point is society producing the most output possible with the available resources and technology? (See Figure 1.1.)
A. A. B. B. C. C. D. D.
Which is best considered a supply factor for long-run economic growth?
A. The stock of capital goods. B. Full employment of resources. C. Personal consumption expenditures. D. Government spending.
Refer to the graph shown. If consumers had to pay $13 per unit for this product instead of $10 per unit, consumer surplus would fall from:
A. 1,125 to 810. B. 1,500 to 810. C. 1,125 to 405. D. 2,250 to 1,125.