Which of the following can be demonstrated using a Lorenz curve?
a. The size of total production in a household
b. All possible consumption combinations of goods that someone can afford
c. The social rate of return of antipoverty programs
d. Income distribution across a population
d. Income distribution across a population
Every Lorenz curve diagram begins with a line sloping up at a 45-degree angle. The points along this line show what perfect equality of the income distribution looks like, while the other lines show actual distribution for the years in question.
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In the short run, a rise in the price level brings a ________ in the real interest rate that ________ investment, bringing ________ in the quantity of real GDP demanded
A) rise; decreases; a decrease B) fall; decreases; a decrease C) fall; increases; an increase D) rise; increases; an increase E) rise; decreases; an increase
If the cost of capital increased to 25%, does the firm invest in the printer?
a. Yes because the NPV>0 b. Yes because the NPV=0 c. Need information on the marginal benefits and costs d. No because the NPV<0
Suppose that for Merv the marginal utility of $50-per-serving caviar is 100 and the marginal utility of $1-per-serving popcorn is 10. For his snack, Merv should buy:
A. the caviar if he has the $50; otherwise, the popcorn. B. the caviar if he has the $50; otherwise, nothing. C. the popcorn, whether he has the $50 or not. D. five servings of popcorn for each serving of caviar.
Parity prices for agricultural products are based on the relative purchasing power of farm products during the period of:
A. 1910-1914 B. 1929-1939 C. 1941-1945 D. 1960-1970