For an economy, the greater the value of the Gini co-efficient, _____
a. the greater will be the GDP.
b. the greater will be the income inequality
c. the greater will be the revenue of the government from direct taxes
d. the greater will be the equality in the distribution of income and wealth
e. the lesser will be the expenditure on the part of the government
b
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Natural monopolies occur when a single or a few firms can take advantage of economies of scale and supply the entire industry output.
A. True B. False C. Uncertain
If the demand for money is insensitive to the interest rate, then the most effective expansionary policy would be
a. fiscal policy. b. monetary policy. c. neither fiscal nor monetary policy. d. both fiscal and monetary policy.
According to the World View titled "Jeffrey Sachs: Big Money, Big Plans," how did Columbia University economics professor Jeffrey Sachs expect extreme poverty to be eliminated by 2025?
A. Rich nations must quadruple their foreign aid flows now, and poor nations need to be more accepting of help. B. Rich nations must double their foreign aid flows now and develop full-scale, comprehensive plans for the poor countries to reduce poverty. C. Rich nations must double their foreign aid flows now and then double them again in 10 years, while poor nations must develop full-scale, comprehensive plans for poverty reduction. D. Poor nations must develop full-scale, comprehensive plans for poverty reduction without the help of rich nations.
Use the following general linear demand relation:Qd = 100 - 5P + 0.004M - 5PRwhere P is the price of good X, M is income, and PR is the price of a related good, R. If M = $50,000 and PR= $10 and the supply function is Qs = 150 + 5P, market price and output are, respectively,
A. P = $10 and Q = 200. B. P = $12 and Q = 150. C. P = $15 and Q = 175. D. P = $12 and Q = 200. E. P = $15 and Q = 225.