Comparisons of per capita GDP across international boundaries provide information on the distribution of GDP within each country.
Answer the following statement true (T) or false (F)
False
Per capita GDP is simply the average; it does not take into account the actual distribution of income.
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If an import quota is imposed on imports of shrimp into the United States, U.S. producer surplus from shrimp will ________ and U.S. total surplus from shrimp will ________
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease E) increase; not change
According to the Solow model of economic growth, if per capita savings, s (Y/N)0, exceeds required steady state investment, (n + d) K/N, then
A) per capita output declines. B) capital per capita increases. C) capital per capita decreases. D) steady state growth characterizes the economy.
When Pepsi becomes more expensive relative to other beverages, people will purchase less Pepsi. This observation is known as the:
a. diamond-water paradox. b. law of diminishing marginal utility. c. substitution effect. d. income effect.
Which of the following tax structures is potentially consistent with the concept of vertical equity?
a. A proportional tax b. A progressive tax c. A regressive tax d. Any of these tax structures are potentially consistent with vertical equity