In an economy where the poorest quintile of the population receives 5 percent of the income, the Lorenz curve:
a. is the diagonal of the box.
b. lies below the diagonal in the box.
c. lies above the diagonal in the box.
d. is the lower right corner of the box.
e. is the upper left corner of the box.
b
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Refer to Table 2-6. What is James's opportunity cost of making a wagon?
A) 3/4 of a wagon B) 1/2 of a wagon C) 2 tricycles D) 1/2 of a tricycle
A country's current account
A) balance equals the change in its net foreign wealth. B) balance equals the change in its foreign wealth. C) surplus equals the change in its foreign wealth. D) deficit equals the change in its foreign wealth. E) balance equals its GNP.
One way for the government to eliminate a negative externality is to
A) charge an emissions fee. B) set an emissions standard. C) levy an effluent charge. D) All of the above.
In 2015, government purchases were the largest component of U.S. GDP
a. True b. False Indicate whether the statement is true or false