The Lorenz curve measures the:
a. distribution of income.
b. effectiveness of government transfer payments.
c. extent to which family incomes are affected by welfare.
d. all of these.
a
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The theory of monopolistic competition was developed in two separate models by
A) Adam Smith and David Ricardo. B) John Kenneth Galbraith and John Maynard Keynes. C) Edward Chamberlin and Joan Robinson. D) Roger Leroy Miller and Paul Samuelson.
Suppose at the consumer's current consumption bundle the marginal rate of substitution of cheese for wine is 1/2 bottle of wine per pound of cheese. The price of one pound of cheese is $6, and the price of a bottle of wine is $10 . The consumer should increase his consumption of
a. cheese, decrease his consumption of wine, and move to a lower indifference curve. b. cheese, decrease his consumption of wine, and move to a higher indifference curve. c. wine, decrease consumption of cheese, and move to a higher indifference curve. d. cheese, decrease consumption of wine, and remain on the same indifference curve.
Suppose the market for loanable funds is in equilibrium. What would happen in the market for loanable funds, other things the same, if the Congress and President increased the maximum contribution limits to 401(k) and 403(b) tax-deferred retirement accounts?
a. the interest rate and quantity of loanable funds would increase b. the interest rate and quantity of loanable funds would decrease. c. the interest rate would increase and the quantity of loanable funds would decrease. d. the interest rate would decrease and the quantity of loanable funds would increase.
Moe has a big exam tomorrow. He considered studying this evening, but decided to hang out with Curly instead. If neither activity involves any explicit costs, and Moe always chooses rationally, it must be true that:
A. Moe gets less benefit from spending time with Curly than from studying. B. Moe gets more benefit from spending time with Curly than from studying. C. the opportunity cost of studying is greater than the value Moe gets from spending time with Curly. D. the opportunity cost of studying is less than the value Moe gets from spending time with Curly.