The values of the Gini coefficient range from zero to +1.
Answer the following statement true (T) or false (F)
True
Zero and 1 are the extreme points of absolute equality and absolute inequality; any value in between is more likely and shows greater inequality the higher the value.
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Technology has played a key role in changing the structure of the economy, which has increased the rewards for additional education and training. Greater access to education and training programs for all workers should therefore
A) play an important role in reducing income inequality. B) have a net effect of increasing income inequality. C) eliminate all income inequality. D) have little effect on the overall state of income inequality.
A cartel is a collusive agreement among a number of firms that is designed to
A) expand output and lower prices but not to a predatory level. B) restrict output and lower prices to a predatory level. C) restrict output and raise prices. D) expand output and raise prices. E) expand output and lower prices to a predatory level.
Which of the following is a characteristic of a competitive price-taker market?
a. Profit maximizing firms in the market will expand output until price equals average variable cost. b. The market demand curve for the product is a horizontal line. c. There are many firms in the market, each producing a small share of total market output. d. The product produced by each of the firms is differentiated.
Which of the following is not correct?
a. The producer who requires a smaller quantity of inputs to produce a good is said to have an absolute advantage in producing that good. b. The producer who gives up less of other goods to produce Good X has the smaller opportunity cost of producing Good X. c. The producer who has the smaller opportunity cost of producing a good is said to have a comparative advantage in producing that good. d. The gains from specialization and trade are based not on comparative advantage but on absolute advantage.