What is a market economy?
What will be an ideal response?
A market economy is an economy in which people exchange goods and services in markets.
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For the calculation of a Lorenz curve using quintiles, the:
a. first quintile contains the richest 50 percent of population. b. first quintile contains the richest 20 percent of population. c. first quintile contains the poorest 50 percent of population. d. first quintile contains the poorest 20 percent of population. e. last quintile contains the poorest 10 percent of population.
The downward sloping aggregate demand curve can be explained in part through the:
A. wealth effect. B. negative relationship between the price level and net exports. C. negative relationship between the price level and investment spending. D. All of these are true.
If a positive permanent supply shock were to occur, the resulting equilibrium would be a:
A. higher level of output at lower prices. B. lower level of output and prices. C. higher level of output and prices. D. lower level of output at higher prices.
The dire predictions about the underfunded nature of Social Security, Medicare, and state and local pensions could be wrong because
A. interest rates may turn out to be higher in the future. B. taxable incomes may turn out to be lower than they are currently predicted to be. C. modest changes to the programs could be enacted soon. D. unemployment rates may turn out to be higher than they are currently predicted to be.