TRUE
What will be an ideal response?
The Lorenz curve is a graphical presentation of the distribution of income. The
horizontal axis measures the cumulative percentage of households and the vertical axis
measures the cumulative percentage of income. The 45-degree line represents the line
of perfect income equality. The further the Lorenz curve is from the line of perfect
income equality, the more unequal the distribution of income is. Also, the line becomes
more curved when income distribution is more unequal.
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Each of the following factors determine the value of a forecast except which one?
A) the accuracy of the forecast B) the slope of the marginal cost curve C) the variability of the firm's demand D) the slope of the average fixed cost curve
Economic growth appears on a production possibilities curve as
A. the curve shifting out away from the origin. B. a change in the slope of the curve. C. the points outside the production possibilities curve. D. the curve shifting in toward the origin.
There are a number of reasons why labor supply curves will shift in a particular industry. Which one of the following is NOT one of them?
A) Changes in working conditions in an industry affect the labor supply curve. B) job flexibility that determines the position of the labor supply curve C) There is a change in the market wage rate. D) Taxes on labor affect the labor supply curve.
The government purchases multiplier is defined as
A) . B) . C) . D) .