In the above figure, if the Lorenz curve were to move closer to the diagonal line containing points b and c, the income distribution would be
A) more unequal.
B) more equal.
C) unchanged.
D) More information is needed to determine how this change would affect the income distribution.
B
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When using the principle of comparative advantage, the person with no absolute advantage should perform the job in which he or she has
a. a 50 percent disadvantage. b. a 75 percent disadvantage. c. a lesser disadvantage. d. been trained.
The goal of fiscal policy is to ________, and typically focuses on ________
A) balance the federal budget; tax rates and tax revenues B) stabilize the supply of money in the economy; price stability C) reduce the severity of economic fluctuations; employment and production D) eliminate balance of payments deficits or surpluses; exchange rate stability
Suppose the inverse market demand is given by P = 20 ? Q. If the incumbent continues to produce eight units of output, which of the following equations best summarizes the potential entrant's residual demand curve?
A. P = 8 ? Q B. P = 12 ? Q C. P = 12 ? 8Q D. P = 20 ? 12Q
If the world price of a product rises relative to the domestic price in a trading nation, then for that product
A. exports will increase or imports will decrease. B. exports and imports will decrease. C. imports will increase or exports will decrease. D. exports and imports will increase.