On a Lorenz curve graph, the area between the line of equality and the Lorenz curve is 2,000, and the entire area beneath the line of equality is 5,000. What does the Gini ratio equal?
What will be an ideal response?
The Gini ratio is the ratio of the area between the line of equality and the Lorenz curve to the entire area beneath the line of equality. So the Gini ratio is 2,000/5,0000 = 0.4.
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The DVCs are:
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A factor-price effect occurs when increases in the industry's output
a. attract new firms to the industry. b. raise the cost of a variable input. c. cause new subindustries to be developed. d. result in lower prices for consumers.
If the fractional reserve system did not exist,
a. the banking system could not create money. b. there would be no effect on the ability of the banking system to create money. c. banks would loan out its required reserves. d. banks would be highly susceptible to bank runs. e. the banking system would realize the money multiplier.