If one person has all the income and everyone else has none, the Gini ratio is 1
Indicate whether the statement is true or false
TRUE
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Total planned real expenditures measured along the aggregate demand curve are made up of
A) consumption spending, factor payments, investment spending, and net export spending. B) consumption spending, income, government spending, and net export spending. C) consumption spending, saving, investment spending, and government spending. D) consumption spending, investment spending, government spending, and net export spending.
If a chemical factory causes noxious fumes to be emitted in the neighborhood, a likely third party would be
a. workers at the factory b. factory managers c. chemical customers d. neighborhood homeowners and their families e. owners of the factory
Dr. Smith on the Channel 6 news says, "The recent figures showing that the unemployment rate is lower this quarter than last quarter are a definite sign that our economy is coming out of the recession." Dr. Jones on the Channel 8 news says, "Recent figures showing that employment is lower this quarter than it was last quarter are a definite sign that our economy is still plunging deeper into the
recession." a. Is it possible for both unemployment and employment to fall at the same time? What factor could account for the observed phenomenon? b. In light of your answer, what do you think about the health of the economy relative to last quarter?
Exhibit 2-1 Production possibilities curve data ConsumptionGoods CapitalGoods 10 0 9 1 7 2 4 3 0 4 In Exhibit 2-1, why is the opportunity cost of producing the fourth unit of capital 4 units of consumption goods but the opportunity cost of producing 4 units of capital is 10 units of consumption goods?
A. It isn't. The opportunity cost of the fourth unit and the opportunity cost of four units is the same. B. Because consumption goods are more valuable than capital goods. C. Because the opportunity cost of capital goods is constant while the opportunity cost of consumption goods is decreasing as this economy moves from more consumption goods to more capital goods. D. Because the opportunity cost of the fourth unit of capital is the consumption goods that must be given up for this economy to move from three units of capital to four units of capital, but the opportunity cots of four units of capital is the amount of consumption goods that must be given up to go from zero units of capital to four units of capital.