The Gini coefficient measures:
a) Income inequality
b) Inflation
c) Unemployment
d) Economic growth
Answer: a) Income inequality
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Which school of thought would be considered the most laissez-faire?
A. the mainstream view B. the monetarist view C. the self-correction view D. the real business cycle view
In a competitive market with high cost and low cost consumers (where firms are unable to tell consumer types apart), any screening costs incurred by firms will be passed on to low cost consumer but not to high cost consumers.
Answer the following statement true (T) or false (F)
Refer to above figure. Suppose the European government provides Airbus with a subsidy of $4 for each airplane sold, and that the subsidy convinces Boeing to exit the Hungarian market. Now Airbus would be the monopolist in this market
What price would they charge, and what would be their total profits?
Economists defend brand names as useful to consumers because brand names
a. provide consumers with information about quality when quality cannot easily be judged in advance of purchase. b. give firms a financial incentive to maintain the high quality associated with their brand name. c. convince consumers to spend more for products nearly identical to generic versions. d. Both a and b are correct.