The Lorenz curve:
A. is an absolute measure of income inequality.
B. is a relative measure of income inequality.
C. has elements of absolute and relative measures.
D. takes into account changes in the standard of living.
Answer: B
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If the purchase and sale of marijuana becomes legalized
A) the equilibrium price and quantity will both rise. B) the equilibrium price will fall, but the change in equilibrium quantity depends upon whether the demand curve shifts rightward more or the supply curve shifts rightward more. C) the equilibrium quantity will rise, but the change in equilibrium price depends upon whether the demand curve shifts rightward more or the supply curve shifts rightward more. D) the equilibrium price and quantity will both fall.
Consider a town with three residents. The residents' demand curves for various acres of a public park are shown below.
The public's willingness to pay for the 2nd acre of parkland is ________.
A. $14. B. $8. C. $6. D. $26.
Suppose that the training, skills, and attitudes received by employees in the computer gaming development industry have positive spillover effects as workers leave the industry and move to other jobs. The specificity rule suggests that the best way to achieve more employment in this industry is to
A. impose a tariff on the importation of computer games. B. give computer game developing firms a subsidy tied to their level of employment. C. remove all sales taxes from the purchases of computer games. D. tax the production of computer games.
If consumers' buying decisions are not very sensitive to changes in price, then their demand is:
A. less elastic. B. perfectly inelastic. C. unit elastic. D. more elastic.