Exhibit 12-1 Income distribution for three countries
QuintileCountry I (%)
Country II (%)
Country III (%)
Poorest 6
8
4
Second12
12
8
Third15
15
10
Fourth27
30
30
Richest40
35
48
Exhibit 12-1 shows the percentage of income received by each population quintile. From this chart we can conclude:
A. Country I has the most unequal income distribution.
B. Country III has a more equal income distribution than Country II.
C. Country II has the most unequal income distribution.
D. Country II has the most equal income distribution.
Answer: D
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A. increases, the price level rises. B. decreases, the price level falls. C. increases, the price level does not change. D. increases, the price level falls.
The effects of a "Buy American" campaign, wherein U.S. consumers are encouraged to only buy goods produced domestically would have results similar to a(n)
A. tariff. B. export subsidy. C. voluntary export restriction. D. quota.
Which of the following factors is not believed to affect output in the long run?
A) technology B) monetary policy C) the size of the labor force D) the capital stock
A price level increase tends to reduce net exports, thereby reducing the amount of real goods and services purchased in the United States. Economists refer to this phenomenon as
A. the open-economy effect. B. the barrier effect. C. the wealth effect. D. the Gross Domestic Product (GDP) effect.