The more bowed out the Lorenz curve is, the
A. richer the society.
B. poorer the society.
C. more equal the distribution of income.
D. less equal the distribution of income.
Answer: D
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The marginal propensity to consume (MPC) is the change in consumption divided by the change in disposable personal income
a. True b. False Indicate whether the statement is true or false
Assume a simplified banking system subject to a 25 percent required reserve ratio. If there is an initial increase in excess reserves of $100,000 . the money supply:
a. increases $100,000 b. increases $400,000. c. increases $125,000 d. decreases $500,000.
The use of money for exchange:
A. encourages more specialization in production. B. increases the importance of a coincidence of wants. C. increases the use of barter. D. reduces consumer sovereignty.
Which statement about price elasticity of demand along a linear demand curve is true?
A. As the quantity demanded increases, so does the buyer's sensitivity to price. B. When price elasticity of demand is equal to 1, consumers are indifferent to subtle price changes. C. The ratio of current price to quantity demanded is a good estimate of the elasticity of demand. D. As the prices of goods increase, the elasticity of demand increases.