Which of the following statements is true?
A. Income distribution in the United States has gotten progressively more unequal since 1929.
B. The Lorenz curve indicates the degree of discrimination in an economy.
C. The Lorenz curve indicates the degree of income inequality in an economy.
D. The richest 5% of Americans earn approximately half of the nation's income.
Answer: C
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For a bank, the ration of after-tax profit to assets is its:
A) net interest margin. B) return on assets. C) return on equity. D) spread.
Anna is a tax accountant and she left her job with a large public accounting company to start her own accounting office. In doing this, Anna gave up her salary of $120,000 and took $60,000 out of her savings (which was earning a return of 5 percent) to fund her startup. Her first year, she had $180,000 in revenues and had $40,000 in operating expenses. Anna’s tax accounting business earned economic profits of
A. $140,000. B. $17,000. C. $20,000. D. zero.
Which of the following factors explains why managers of government agencies have little incentive to achieve operational efficiency?
a. Public-sector managers have no fear of bankruptcy when operational efficiency is not achieved. b. Public-sector managers face fierce competition. c. It is relatively easy for voters to detect operational inefficiency in the public sector and do something to correct it. d. All of the above explain why government agencies have little incentive to be efficient.
Say's law states that
A) demand creates its own supply. B) the more supply there is, the lower prices are. C) supply creates supply. D) supply creates its own demand. E) none of the above