When the Lorenz curve shifts closer to the diagonal, it indicates that
a. the rich are getting richer and the poor are getting poorer
b. total income is rising
c. the distribution of income is becoming more equal
d. the population is decreasing
e. the prices of goods that make up the Lorez curve are rising
C
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The marginal utilities associated with the first 4 units of consumption of good Y are 10, 12, 9, and 7, respectively. What is the total utility associated with the third unit?
a. 3. b. 9. c. 25. d. 31. e. The amount cannot be determined from the marginal utilities.
All else equal, an increase in supply will cause an increase in consumer surplus
a. True b. False Indicate whether the statement is true or false
Suppose an increase in disposable income from $3 trillion to $3.2 trillion increases consumption from $2.5 trillion to $2.6 trillion. The marginal propensity to consume (MPC) is _____
Fill in the blank(s) with the appropriate word(s).
When demand changes and the demand curve shifts, equilibrium price and equilibrium quantity change in the same direction.
Answer the following statement true (T) or false (F)