A straight-line Lorenz curve shows
A. an equal distribution of money income.
B. a highly unequal distribution of income.
C. a high incidence of absolute poverty.
D. a greater than proportionate share of income going to middle-income households.
Answer: A
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According to the graph shown, the change in consumer surplus brought about by the imposition of a tariff to an economy previously open to free trade is:
This graph demonstrates the domestic demand and supply for a good, as well as a tariff and the world price for that good.
A. an increase of HIJKL.
B. a loss of HIJKL.
C. a gain of DE.
D. a loss of DE.
About what percent of the world's water supplies are used for agricultural purposes?
a. 90 b. 70 c. 45 d. 20 e. 10
Poverty is defined in two ways: the absolute concept of poverty and the relative concept of poverty.
Answer the following statement true (T) or false (F)
Suppose Country A had been traditionally enjoying a comparative advantage in the production of Good X. As a result, most of the large firms manufacturing and exporting Good X were concentrated in Country A. However, recently it has been observed that the comparative advantage in the production of Good X has shifted to Country B owing to better factor availability and lower input prices. Some new firms are contemplating to start operating in Country B. Which of the following, if it happens, makes it more likely that the new firms in Country B will not be able to operate profitably?
A. The demand for Good X increases substantially in Country A in the near future. B. The firms in Country A lower the prices for their products. C. The input prices in Country A increase significantly in the near future. D. The firms in Country A expand production beyond the optimum point and will experience an increase in per unit cost with a further increase in output.