Which of the following best explains how income inequality is calculated?
a. Measure the gap between middle income families and the near-poor
b. Compare those with middle incomes to those with low incomes
c. Compare those with high incomes, middle incomes, and low incomes
d. Estimate the income of those just above and just below the poverty line
c. Compare those with high incomes, middle incomes, and low incomes
Income inequality is calculated by comparing those with high incomes, middle incomes, and low incomes.
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The Condorcet paradox shows that even if each individual in a group has transitive preferences, the group's collective preferences may not be transitive
Indicate whether the statement is true or false
Economists believe mergers can sometimes achieve greater efficiency than two companies that do not merge
a. True b. False Indicate whether the statement is true or false
Apple just announced it will be coming out with the newest model iPhone in the next six months. One could reasonably expect demand for the current model of iPhone to:
A. increase due to a change in expectations of future prices. B. decrease due to the change in price of a substitute good. C. decrease due to a change in expectations of future prices. D. increase due to limited supply of the current model.
A sharp increase in stock prices makes people much wealthier. If the main effect of this increased wealth is felt on labor supply, what happens to current employment and the real wage rate?
A. Both employment and the real wage rate would increase. B. Both employment and the real wage rate would decrease. C. Employment would increase and the real wage would decrease. D. Employment would decrease and the real wage would increase.