Refer to the information provided in Figure 18.1 below to answer the question(s) that follow.
Figure 18.1Refer to Figure 18.1. Suppose that the Lorenz curve ran along the horizontal axis to 100% of families, then became vertical to 100% of income. This would mean that
A. the distribution of income is perfectly equitable.
B. the distribution of income is equal.
C. only one family earned all the income.
D. the distribution of income is completely inequitable.
Answer: C
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Fiscal expansion under fixed exchange rates will have what temporary effect?
A) the money supply will decrease. B) output will decrease. C) the exchange rate will increase. D) the exchange rate will decrease. E) there will be no effect.
The fixed basket of Econoland consists of 10 units of A, 20 units of B, and 30 units of C. Current prices are $1 per unit of A, $2 per unit of B, and $3 per unit of C. Base year prices are $1 for each unit of A, B, and C. What is the CPI in the current year?
A) 140 B) 43 C) 233 D) 430 E) 100
Balance of payments deficits arise whenever the exchange rate is pegged at an artificially high level.
Answer the following statement true (T) or false (F)
Refer to Table 2-4. What is Jack's opportunity cost of mowing a lawn?
A) one-half of a garden cultivated B) two lawns mowed C) two-thirds of a garden cultivated D) one and a half lawns mowed