Because wealth is more concentrated than income, the Gini coefficient for the wealth distribution is greater than the Gini coefficient for the income distribution.
Answer the following statement true (T) or false (F)
True
Rationale: Larger Gini coefficients indicate greater inequality -- and wealth is indeed more concentrated than income.
You might also like to view...
The approach to analyzing consumer behavior that asks consumers to rank and choose among different product attributes to reveal their relative valuation of different characteristics is called:
A) a direct consumer survey. B) contingent valuation. C) the hedonic estimation technique. D) conjoint analysis.
Refer to the graph shown. An effective price ceiling at $3 causes producer surplus to:
A. increase from 80 to 110. B. fall from 80 to 30. C. fall from 120 to 30. D. increase from 30 to 120.
Which of the following terms describes the situation in which all resources are able to move to to highest-valued uses via voluntary exchange?
A) government intervention B) a market failure C) economic efficiency D) an externality
Answer the following questions true (T) or false (F)
1. The income effect of a price change refers to the change in the quantity demanded of a good that results from a change in the price of a complementary product. 2. If the price of peaches, a substitute for plums, decreases the demand for plums will increase. 3. An inferior good is a good for which the quantity demanded decreases as the price increases, holding everything else constant.