Figure 33.3 illustrates Lorenz curves for four different economies. For which economy would the lowest 20 percent of families receive the smallest share of total income?
A. A.
B. B.
C. C.
D. D.
Answer: D
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To increase future living standards by pursuing higher current rates of investment spending, an economy must:
A. reduce the current capital stock. B. allow higher rates of current consumption. C. reduce current rates of consumption spending. D. decrease the amount of future research and development spending.
A firm produced 376 units with 10 workers. When the eleventh worker was hired, the output increased to 398 units. The marginal product of the eleventh worker is:
A) 22 units. B) 37.6 units. C) 36.18 units. D) 398 units.
Which of the following models do not believe that there exists a short run tradeoff between higher inflation and lower unemployment?
a. Keynesians b. monetarists c. new classical d. real business cycle e. none of the above
Adverse selection occurs in the health insurance market because:
A. it is difficult for insurance companies to distinguish between high risk and low risk customers. B. people cannot predict their future health status. C. the least healthy people are the least likely to acquire insurance. D. health care markets are unregulated.