If everyone earned the same income, the Lorenz curve would be
A) a rectangular hyperbola.
B) a straight line from the origin at a 45-degree angle.
C) the horizontal axis.
D) very bowed from the diagonal.
Answer: B) a straight line from the origin at a 45-degree angle.
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The inflation tax is
a) an additional income tax levied during periods of inflation to prevent government revenue from losing value b) the movement of taxpayers into higher tax brackets due to inflation c) the reduction in the value of cash due to inflation d) the federal sales tax on goods whose prices rise by more than the general inflation rate e) a tax on trucking, so called because of the inflation of the tires
The legally bound obligation to pay debts:
a. note of stockhold b. dividend c. note of Stockholm d. liability e. stock and bondhold
A country opens up to trade and imports clothing. In the clothing market, surplus has been redistributed from
A) producers to consumers. B) consumers to producers. C) government to consumers. D) producers to government.
The level of savings in an economy can be:
A. an important determinant of future productivity. B. a source of funding for physical capital. C. an important determinant of capital investment. D. All of these are true.