If Coca-Cola opens a bottling plant in Brazil, what effect would it have on that country's Gini coefficient?
As income equality increases, the Gini coefficient falls. Therefore, a new bottling plant would reduce the
Gini coefficient, because the investment would create nonagricultural employment, and increase the
number and variety of skilled, semiskilled, administrative, managerial, and professional jobs available. This
would increase income equality by broadening the base of Brazil's middle class.
You might also like to view...
Suppose nominal interest rates in the U.S. rise from 4.6% to 5% and decline in Britain from 6% to 5.5%, while U.S. consumer inflation remains unchanged at 1.9% and British inflation declines from 4% to 3%. In addition suppose, real growth in the U.S. is
forecasted for next year at 4% and in Britain real growth is forecasted at 5%. Finally, suppose producer price inflation in the U.S. is declining from 2% to 1% while in Britain producer price inflation is rising from 2% to 3.2%. Explain what effect each of these factors would have on the long-term trend exchange rate ( per $) and why?
Fine Edge manufactures lawn mowers. In 2014 it had $2 million worth of lawn mowers in inventory. In 2015 it sold $10 million worth of lawn mowers to consumers and had $1 million worth of lawn mowers in inventory. How much did the lawn mowers produced by Fine Edge add to GDP in 2015?
a. $11 million b. $10 million c. $7 million d. $9 million
An industry in which there are just a few large firms is likely to be characterized by
A. monopoly. B. oligopoly. C. perfect competition. D. monopolistic competition.
The price elasticity of demand is calculated by:
A. the change in price divided by the change in quantity demanded. B. the change in quantity demanded divided by the change in price. C. the percentage change in price divided by the percentage change in quantity demanded. D. the percentage change in quantity demanded divided by the percentage change in price.