If the area between the diagonal line of absolute equality and the Lorenz curve is greater for the United States than for Japan, we can conclude that the
A. Distribution of income in Japan is as equal as in the United States.
B. Relative distributions of income in the two countries are the same.
C. Distribution of income in Japan is closer to being equal than in the United States.
D. Distribution of income in Japan is less equal than in the United States.
Answer: C
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Alice and Gene work in the mailroom, sorting and delivering mail. In order for them to benefit from specialization and trade, Alice must
A) be able to both sort and deliver faster than Gene. B) be equally productive in both sorting and delivering. C) have a comparative advantage in both sorting and delivering. D) have a comparative advantage in one task and Gene must have a comparative advantage in the other task. E) be equally productive as Gene in both sorting and delivering.
In a coordination game, a Nash equilibrium occurs when
a. each player ignores the strategy of the other player b. each player chooses no strategy, but maintains the status quo c. each player chooses the same strategy d. one player can improve the outcome by changing strategy e. None of the answers is correct.
One economically valid approach to regulation is simply to break all large firms into many smaller ones
a. True b. False Indicate whether the statement is true or false
The oligopoly price will be greater than marginal cost but less than the monopoly price when
a. the oligopolists collude by jointly choosing a quantity to produce and maintaining their agreement. b. the oligopolists collude by jointly choosing a price to charge and maintaining their agreement. c. each oligopolist individually chooses a quantity to produce to maximize profit. d. each oligopolist's objective is minimization of average total cost, rather than maximization of profit.