?Wind ChimesSun DialsDeena912Artie68 Table 3.4Consider two individuals, Artie and Deena, who produce wind chimes and sun dials. Artie's and Deena's weekly productivity are shown in Table 3.4. Which of the following is true?
A. Artie has a comparative advantage in producing wind chimes but not sun dials.
B. Artie has a comparative advantage in producing sun dials but not wind chimes.
C. Artie has a comparative advantage in producing both goods.
D. Artie does not have a comparative advantage in producing either good.
Answer: D
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A) More; flatter B) Less; steeper C) less; vertical D) More; steeper
Assume the market in the graph shown with demand D and supply S1 is in equilibrium at a quantity of 5 units. Total surplus is:
A. $5.
B. $15.
C. $12.50.
D. $60.
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a. that for every 1% increase in quantity, there will be a 6% increase in price. b. that for every 1% increase in quantity, there will be a 6% decrease in price. c. that for every 6% increase in quantity, there will be a 1% increase in price. d. that for every 6% increase in quantity, there will be a 1% decrease in price.
When the Lorenz curve lies above the diagonal,
a. the poorest 20 percent of the population receives more than 20 percent of income b. the richest 20 percent of the population receives more than 20 percent of income c. every quintile receives identical incomes d. it indicates that total income has increased even though the distribution of income remains unchanged e. it is incorrectly drawn because no Lorenz curve can lie above the diagonal