What is a Lorenz curve? What is a Gini coefficient?
What will be an ideal response?
A Lorenz curve is a curve that plots, for any given percentage of the population, the proportion of total income earned by that particular group of people.
A Gini coefficient is a number that measures a society's income inequality, based on how income is distributed across quintiles.
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A monopolist will spend resources to advertise its product so long as
A) net profits increase. B) gross profits increase. C) demand increases. D) total revenue increases.
Answering the For Whom to Produce question means that:
A. society is determining the size of the economic pie, B. scarcity no longer restricts production. C. society must have a method to decide who will be rich and who will be poor. D. an economy is selecting among its resources for production.
Refer to the information provided in Figure 4.3 below to answer the question(s) that follow.
Figure 4.3Refer to Figure 4.3. At an effective price ceiling for pencils,
A. price is above equilibrium. B. quantity demanded is equal to quantity supplied. C. quantity demanded is greater than quantity supplied. D. quantity demanded is less than quantity supplied.
Related to the Economics in Practice on p. 418: John Steinbeck's The Grapes of Wrath is set in the early 1930s. During this time, the U.S. economy was primarily in the ________ phase of the business cycle, culminating in the Great Depression.
A. trough B. recession C. expansion D. peak