The Gini coefficient is calculated by measuring the area between:
A. the Lorenz curve and the x-axis.
B. the Lorenz curve and the y-axis.
C. the line of perfect equality and the Lorenz curve.
D. the line of perfect inequality and the Lorenz curve.
Answer: C
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Entrepreneurs often undertake the innovations that are necessary to bring inventions to the marketplace. Accordingly, what empirical pattern should be expected in an international comparison?
A) Countries with higher rates of entrepreneurship have higher rates of poverty. B) Countries with higher rates of entrepreneurship have lower rates of immigration. C) Countries with higher rates of entrepreneurship have lower rates of economic growth. D) Countries that protect the property rights of entrepreneurs will have higher rates of economic growth.
According to game theorists, a cartel of several firms is an example of a(n)
A) zero-sum game. B) uncooperative game. C) cooperative game. D) noncooperative game.
In the early 1980s the savings and loan associations started making _____ loans and paying their shareholders _____ interest rates.
A. riskier; higher B. riskier; lower C. less risky; higher D. less risky; lower
The more elastic the demand curve, a monopoly
A) will have a larger Lerner Index. B) will face a lower marginal cost. C) will earn more profit. D) will lose more sales as it raises its price.