The above figure shows the Lorenz curve for wealth for the nation of Rusha. The poorest forty percent of the population own what percent of wealth?
A) 0 percent
B) 10 percent
C) 20 percent
D) 40 percent
C
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Which of the following is true?
a. If the Australian dollar depreciates, the Australian trade deficit decreases, since Australian products become cheaper to foreigners. b. If the Australian dollar depreciates, the Australian trade deficit decreases, since Australian products become more expensive to foreigners. c. If the Australian dollar depreciates, the Australian trade deficit increases, since Australian products become more expensive to foreigners. d. If the Australian dollar appreciates, the Australian trade deficit decreases, since Australian products become cheaper to foreigners. e. If the Australian dollar appreciates, the Australian trade deficit decreases, since Australian products become more expensive to foreigners.
Which of the following statements is true about the total utility provided by a good?
a. Total utility can never be negative. b. Total utility is maximized when marginal utility is maximized. c. Total utility continues to increase as more of the good is consumed. d. Total utility is maximized when marginal utility is zero (for total utility > 0). e. Total utility is maximized when marginal utility is zero (for total utility < 0).
Answer the following question with a starting point of simultaneous long run and short run macroeconomic equilibrium, with the overall production level in the economy at the natural rate level of real GDP (YNR). This equilibrium may be illustrated in a diagram with the average price level (P) measured on the vertical axis, and real GDP (Y) measured on the horizontal axis. The long run equilibrium is represented by the intersection of the vertical long run aggregrate supply function (LRAS), and the downward sloping aggregate demand function (AD). The short run equilibrium is represented by the intersection of the upward sloping short run aggregate supply function (SRAS), and the downward sloping aggregate demand function (AD). (See the diagram on the left panel.)
Question: If a recession were to occur as a result of an inward shift in the AD function (see the diagram on the right panel), the result is: A) A decrease in the average price level (P), and an increase in real GDP (Y). B) An increase in the average price level (P), and an increase in real GDP (Y). C) An increase in the average price level (P), and a decrease in real GDP (Y). D) A decrease in the average price level (P), and a decrease in real GDP (Y). E) No change in the average price level (P), and no change in real GDP (Y).
When Jeff bought a house he also bought homeowners insurance, but when he bought a new dishwasher he refused to buy the repair insurance policy the store offered. Assuming Jeff is rational in his choices, which of the following is the most likely cause of his behavior?
A. The expected loss from dishwasher failure is less than the insurance premium and he can afford to absorb smaller losses. B. The probability of his house burning is greater than the probability a dishwasher failure. C. He switches back and forth between risk averse and risk loving preferences. D. He doesn't trust appliance insurers because they have no agent to relate to.