Which of the following statements regarding the Lorenz curve is FALSE?
A) A Lorenz curve is a geometric representation of the distribution of income.
B) A Lorenz curve that is perfectly straight represents complete income equality.
C) The less bowed is a Lorenz curve, the less equally income is distributed.
D) The more bowed is a Lorenz curve, the more unequally income is distributed.
Answer: C
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If potential GDP increases, then the
A) real wage rate increases. B) real wage rate falls. C) aggregate supply curve shifts leftward. D) aggregate demand curve shifts rightward. E) aggregate supply curve shifts rightward.
"Strike first" or initiating a war may be the appropriate strategy for a nation if
a. it has a national security advantage which it believes will be eroded in time b. it already faces a national security disadvantage vis-à-vis an adversary c. it wants to shift its production possibilities curve to the right d. it wants to shift its production possibilities curve to the left e. it wants to shift its adversary's production possibilities to the right
As of 2011, the single largest asset category in the net worth portfolios of households is:
A. government and corporate bonds B. stocks and mutual fund shares C. consumer durable goods D. housing
The long-term financing dimension of financial management ________.
A) deals with the selection, issuance, and management of long-term debt and equity B) is unaffected by currency changes because everyone borrows in U.S. dollars C) focuses on the analysis of investment opportunities D) is independent of the capital structure of an MNE