Refer to the figure below, which shows four different Lorenz curves (I, II, III, and IV). The movement from point b to point a in the graph would indicate that the:
A. Lower 40% of households increased their share of total income from 25% to 40%
B. Lower 40% of households decreased their share of total income from 60% to 40%
C. Lower 60% of households decreased their share of total income from 40% to 25%
D. Lower 40% of households increased their share of total income from 40% to 60%
C. Lower 60% of households decreased their share of total income from 40% to 25%
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In the above figure of a monopolistically competitive firm, the area of economic profit is
A) ADB. B) ABC. C) P2AD P4. D) P2FEP5.
Currency traders expect the dollar to appreciate. What impact will this have on equilibrium in the foreign exchange market?
A) The dollar will appreciate, and the equilibrium quantity of dollars will increase. B) The dollar will depreciate, and the equilibrium quantity of dollars exchanged will decrease. C) The dollar will appreciate, and the equilibrium quantity of dollars will decrease. D) The dollar will appreciate, and the change in the equilibrium quantity of dollars exchanged cannot be determined.
Owners of a corporation ________ through dividend payments on shares of that firm's stock
A) share in the profits of the firm B) retain earnings of the firm C) indirectly finance the firm D) issue bonds for the firm
Keynes believed the government should
a. control wages and prices to ensure full employment. b. ensure that workers earned high wages and full employment. c. ensure that aggregate demand was high enough to ensure full employment. d. ensure aggregate demand was high enough to control the economy.