Other things the same, if U.S. residents wanted to buy more foreign-made computers and foreign residents wanted to purchase more U.S. bonds then,
a. U.S. net exports and the exchange rate would rise.
b. U.S. net exports would rise, but what would happen to the exchange rate is uncertain.
c. U.S. net exports would fall, but what would happen to the exchange rate is uncertain.
d. U.S. net exports and the exchange rate would fall.
c
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What does the production possibilities frontier imply about the resource allocation?
A. Only some points on the curve are efficient. B. All points on the curve are equally efficient. C. A point that lies below the curve is more efficient. D. A point that lies above the curve is readily achievable.
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
Both unemployment insurance and income taxes are examples of
a. economic cycle contributors b. macro consensus c. government regulation d. automatic stabilizers e. tax rates
Exhibit 12-2 Lorenz curve
As shown in Exhibit 12-2, the perfect equality line is drawn between points:
A. A and B. B. B and D. C. A and C along the straight line. D. A and C along the curve.