In the above figure, the straight line between the lower left corner and the upper right corner shows
A) perfect equality in income distribution.
B) perfect inequality in income distribution.
C) that wealth rises as income rises.
D) that household size rises as income rises.
A
You might also like to view...
Which of the following antebellum institutions acted most like a central bank?
a. The First Bank of the United States b. The Second Bank of the United States c. Banks created by the National Bank Act d. The U.S. Treasury
There are multiple models of pricing behavior in oligopolistic markets because
a. it is difficult to predict how rival firms will react to any pricing decision b. the demand curve slopes upward for these firms c. firms could earn profit in the long run unlike other markets d. price has a direct impact on profit for a firm in oligopoly e. the products are not identical in terms of quality, image, location
When the price of an inferior good increases,
a. both the income and substitution effects encourage the consumer to purchase more of the good. b. both the income and substitution effects encourage the consumer to purchase less of the good. c. the income effect encourages the consumer to purchase more of the good, and the substitution effect encourages the consumer to purchase less of the good. d. the income effect encourages the consumer to purchase less of the good, and the substitution effect encourages the consumer to purchase more of the good.
A profit-maximizing firm will use additional units of resources for production until:
A. Total, average, and marginal cost are equal B. Total, average, and marginal revenue are equal C. The marginal revenue product equals the marginal resource cost D. The marginal revenue product is greater than the marginal resource cost