Exhibit 10-12 Income distribution for three countries
QuintileCountry I (%)
Country II (%)
Country III (%)
Poorest 6
8
4
Second12
12
8
Third15
15
10
Fourth27
30
30
Richest40
35
48
Exhibit 10-12 shows the percentage of income received by each population quintile. In Country I we can conclude that the:
A. richest 20 percent of the population received 25 percent of the economy's income.
B. richest 20 percent of the population received 40 percent of the economy's income.
C. richest 20 percent of the population received 80 percent of the economy's income.
D. least-wealthy 20 percent of the population received 40 percent of the economy's income.
Answer: B
You might also like to view...
Due to macroeconomics interdependence between large countries, the effect of a permanent fiscal expansion by Home is as follows: Home output
A) falls, Home's currency appreciates, Foreign output rises. B) rises, Home's currency appreciates, Foreign output rises. C) rises, Home's currency depreciates, Foreign output rises. D) rises, Home's currency appreciates, Foreign output decreases. E) falls, Homes currency depreciates, Foreign output rises.
Which of the following is true of marginal revenue for a monopolist that charges a single price?
a. P = MR because there are no close substitutes for the monopolist's product. b. P > MR because the monopolist must decrease price on all units sold in order to sell an additional unit. c. P < MR because the monopolist must decrease price on all units sold in order to sell an additional unit. d. P = MR only at the profit-maximizing quantity.
When the parties to a deal have access to different information:
A. markets may fail to exist in such cases. B. parties will voluntarily share information truthfully in order to achieve efficiency. C. markets will be efficient. D. parties will blindly trust one another.
Describe the Mexican peso crisis in terms of the imbalances that caused it, the policies Mexico used to respond, and the lessons learned
What will be an ideal response?