If the Gini co-efficient for an economy is 0.85, which of the following statements is true?
a. The national income of this economy is more or less equally distributed.
b. The Lorenz curve for the economy will bow above the line of perfect equality.
c. The Lorenz curve for the economy will coincide with the line of perfect equality.
d. The Lorenz curve for the economy will bow down below the line of perfect equality.
e. The Lorenz curve for the economy will be a rectangle.
d
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The Federal Reserve focuses on the inflation rate based on the ________ rather than the CPI; to measure the underlying trend in inflation, it focuses on the ________
A) GDP deflator; overall GDP deflator B) GDP deflator; core GDP deflator C) PCE price index; core PCE price index D) PCE price index; overall PCE price index
If the average price of a car suddenly changes from $15,000 to $25,000, larger, more remote stores with lower prices are ________ to have a(n) ________ in the number of customers.
A) not likely; change B) likely; decrease C) likely; increase D) not likely; decrease
What is the marginal cost of the 5th unit?
a. $100 b. $105 c. $110 d. $115
The nominal wage is _____
Fill in the blank(s) with the appropriate word(s).