If greater equality is the benefit of government intervention into the allocation of society's resources, what is the cost?
loss of efficiency
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A firm engaging in group price discrimination
A) divides customers into groups and then charges each customer within each group a different price, similar to perfect price discrimination. B) divides customers into groups and then charges each group a different price. C) bundles products into groups and sells the groups at different prices. D) finds the average reservation price for a group of customers and sell its goods at that price.
Which of the following statements is a correct interpretation of some economists' views?
A. When the rich do well, the total pie is increased so much that the benefits that trickle down to the poor are greater than the proceeds they would get from redistribution. B. When the government gives income to the head of a household, other members of the household remain in need. C. When the rich do well, the total pie is decreased, so that the poor are worse off than they were before. D. When the incomes of the poor are increased, the poor purchase more goods and services, and this causes lower profits.
Refer to the information provided in Figure 18.1 below to answer the question(s) that follow.
Figure 18.1Refer to Figure 18.1. Suppose that the Lorenz curve ________. This would mean that the distribution of income is equal.
A. was perfectly vertical B. was the same as the 45-degree line OB C. was below the 45-degree line OB D. was above the 45-degree line OB
Statistics show that the ________ a country is, the ________ is the share of agricultural output in its total output.
A. more developed; larger B. more developed; smaller C. more populated; smaller D. less populated; smaller