The Gini coefficient is calculated by measuring the area between:
A. the line of perfect inequality and the Lorenz curve.
B. the line of perfect equality and the Lorenz curve.
C. the Lorenz curve and the x-axis.
D. the Lorenz curve and the y-axis.
B. the line of perfect equality and the Lorenz curve.
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In a housing market with no rent ceilings, the equilibrium rent is that for which the quantity of apartments demanded
A) equals the quantity supplied. B) is greater than the quantity supplied. C) is less than the quantity supplied. D) might be greater than, equal to, or less than the quantity supplied depending on whether the supply curve is upward sloping, horizontal, or vertical. E) None of the above answers is correct because without rent ceilings there is no equilibrium rent.
Calculate the value of the government purchases multiplier if the marginal propensity to consume equals 0.9, the tax rate equals 0.25, and the marginal propensity to import equals 0.15
What will be an ideal response?
According to convergence theory, countries that start out poor should initially grow:
A. faster than ones that start out rich, but will eventually slow to the same growth rate. B. slower than ones that start out rich, but will eventually grow to the same growth rate. C. faster than ones that start out rich, and will eventually surpass their level of income. D. slower than ones that start out rich, and therefore will never reach a similar growth rate.
Suppose you live in the suburbs and dump your garbage on your front lawn on a daily basis.
A. Your actions hurt no one but yourself. B. Your actions constitute an external cost to your neighbors. C. Your actions constitute an external benefit to your neighbors. D. Your actions would not be considered a market failure.