Suppose that we compare shares of income earned by different U.S. groups by dividing all households into five groups. Which of the following statements about the income distribution in the United States is correct?
A. Shares of income remain roughly constant as we move from the lowest quintile to the highest quintile.
B. Shares of income decrease as we move from the lowest quintile to the highest quintile.
C. Shares of income increase as we move from the lowest quintile to the highest quintile.
D. None of these
Answer: C
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Refer to Game Matrix I. If this game is played sequentially with Player A choosing first, the Stackelberg equilibrium is
a. the upper left-hand corner.
b. the upper right-hand corner.
c. the lower left-hand corner.
d. the lower right-hand corner.
Which of the following equations best represents a Cobb-Douglas production function?
A) Y = AK1L1 B) Y = AK3/4L1/4 C) Y = AK1/3L3 D) Y = AK2/3L3/2
Other things equal, an increase in the consumer confidence index tends to raise the average propensity to consume
a. True b. False Indicate whether the statement is true or false
Both unemployment insurance and income taxes are examples of
a. economic cycle contributors b. macro consensus c. government regulation d. automatic stabilizers e. tax rates