Which of the following is shown on the horizontal axis of a Lorenz curve?
a. Cumulative share of population
b. Cumulative percentage of total income received
c. Cumulative distribution of wages per household
d. Cumulative change in income per household
a. Cumulative share of population
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Calculate the elasticity for each variable and briefly comment on what information this gives you in each case
What will be an ideal response?
Economic fluctuations or business cycles:
a. measure changes in the total number of new businesses started during a year b. are fluctuations in the Dow Jones industrial average relative to a long-term growth trend. c. look at the role played by business on the level of unemployment. d. are fluctuations in the level of economic activity relative to a long-term growth trend. e. are changes in government spending that occur over a period of time.
A situation where quantity demanded exceeds quantity supplied is called a(n) ______.
a. substitution b. equilibrium c. shortage d. surplus
When a society is more equal:
A. the more the economy grows, so the best economy is the most equal. B. economic growth will provide the most resources for its disadvantaged members. C. the more everyone gains when the economy improves, but that doesn't mean the most equal society is the best society. D. economic growth will create imbalance, and the government will need to work to equalize incomes.