Some economists criticize the Lorenz curve because it
A) includes too many things in measuring income, such as food stamps, housing aid, and other government programs.
B) does not account for the effect of age on a family's income.
C) measures unreported income earned in the underground economy.
D) uses after-tax income when pre-tax income is more appropriate.
Answer: B
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In the above figure, curve A is the ________ curve and curve B is the ________ curve
A) total variable cost; total fixed cost B) total cost; total fixed cost C) total fixed cost; total variable cost D) total cost; total variable cost E) total variable cost; total cost
When an economy is experiencing a negative output gap, there is:
A. inflationary pressure due to low demand. B. inflationary pressure due to high demand. C. significant inflationary pressure due to low demand. D. significant inflationary pressure due to high demand.
In the United States, income taxes and transfer payments:
A. decrease interest rates and the net export effect. B. act as automatic stabilizers for fluctuations in income. C. are the source of most of the operational lag with fiscal policy. D. destabilize the economy.
If there is an increase in the number of workers who want to work as accountants, there will be a
A. Movement down the labor supply curve to the left. B. Leftward shift of the labor supply curve. C. Rightward shift of the labor supply curve. D. Movement up the labor supply curve to the right.