The figure shows two Lorenz curves. Suppose both Lorenz curves measure income. Lorenz curve A shows ________ Lorenz curve B
A) income is more equally distributed than the income shown in
B) income is less equally distributed than the income shown in
C) the first quintile earns less income than the first quintile earned in
D) the fifth quintile earns more income than the fifth quintile earned in
A
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Suppose that a firm has an average variable cost of $52.50 when producing 120 units of output. What is the firm's total variable cost?
What will be an ideal response?
One effect of adverse selection in a market is that the equilibrium quantity of the product may
be smaller than it would have been if there were no asymmetric information problems. Indicate whether the statement is true or false
A major hurricane causes production problems in Gulf Coast region of the United States. This would cause
A) the short-run aggregate supply curve to shift to the left, but there would be no effect on the long-run aggregate supply curve. B) the short-run aggregate supply curve to shift to the left, and the long-run aggregate supply curve would shift to the right. C) both the short-run and the long-run aggregate supply curves to shift to the right in equal amounts. D) both the short-run and the long-run aggregate supply curves to shift to the left, but the long-run aggregate supply curve would shift more than the short-run curve.
Which of the following provides an example of command-and-control regulation?
A. ?Taxing producers based on the external costs created by their pollution, thus internalizing external costs. B. ? Requiring firms to reduce their pollution by 50 percent, thus allowing them to emit 50 percent of their historical emissions, and allowing them to freely buy and sell allowances. C. ?Requiring firms to use a particular type of pollution-control technology, such as smokestack scrubbers or catalytic converters. D. ?Subsidizing firms that exceed their pollution-control targets.?