The Lorenz curve would be a diagonal line if income were distributed equally.
Answer the following statement true (T) or false (F)
True
The diagonal line represents an income distribution such that each quintile family earns the same quintile of income. That is, income is equally distributed.
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Explain why proponents of supply-side effects of tax rate variations who also believe that tax-rate changes influence aggregate demand might claim that cuts in marginal income tax rates can potentially push up real Gross Domestic Product (GDP)
without generating inflation.
In the above figure, the average total cost curve is curve
A) A. B) B. C) C. D) D.
In a market-oriented economic model:
a. no government agency or guiding intelligence oversees the set of responses and interconnections that result from a change in price. b. no government agency or guiding intelligence oversees the set of responses and interconnections that result from a change in demand. c. a government agency or guiding intelligence oversees the set of responses and interconnections that result from a change in price. d. a government agency or guiding intelligence oversees the set of responses and interconnections that result from a change in demand.
Refer to the information provided in the table below to answer the following question. Table 7.3
Refer to Table 7.3. Suppose output varies, ceteris paribus, with labor input in the following manner displayed above. After how many units of labor do diminishing returns set in?
A. 3 B. 4 C. 5 D. They do not set in.