The above figure shows the Lorenz curves for four different countries. If country C implemented a policy of redistribution from rich to poor, its Lorenz curve would
A) move toward country B's.
B) move toward country D's.
C) become positively sloped.
D) move above the line of equality.
A
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Because households have limited incomes, they must
a. rarely take vacations b. live below the poverty line c. allocate their spending carefully d. gamble in casinos frequently e. save for the future
Refer to the accompanying figure. If the market for doughnuts is perfectly competitive, and the price of a doughnut is 10 cents, then this firm:
A. should shut down. B. will earn an economic loss. C. should produce 50 doughnuts. D. should shut down in the long run.
When was the Clayton Act passed, and what were the main practices that it outlawed?
What will be an ideal response?
An increase in the government budget deficit will shift the ________ curve for loanable funds to the ________ and the equilibrium real interest rate will ________
A) supply; right; fall B) supply; left; rise C) demand; right; rise D) demand; left; fall