If a nation's Lorenz curve lies on the 45 degree line of income equality, then
A) more of the nation's income is received by the lowest 25 percent of families than by the highest 25 percent.
B) every household's income level is different.
C) more of the nation's income is received by the highest 25 percent of families than by the lowest percent.
D) the income received by each 25 percent of families is 25 percent of the total income.
Answer: D
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A) a proprietorship. B) a partnership. C) a corporation. D) either a proprietorship or a partnership, depending on other information.
The basic assumption behind the J-curve effect is that
A) supply and demand for currencies are less elastic in the short run than in the long run. B) in the short run, supply will exceed demand; in the long run, they will be equal. C) an overshooting effect occurs as people adjust to the new information. D) investors tend to be overly cautious in currency instruments.
In the short-run, firms in a monopolistically competitive market will earn zero economic profit
a. True b. False
At the profit-maximizing quantity of output for a monopolist, average revenue, marginal revenue, and price are all equal
a. True b. False Indicate whether the statement is true or false