A Lorenz curve that is perfectly straight indicates
A. complete income equality.
B. that a large portion of the population accounts for most of the income.
C. that a small portion of the population accounts for most of the income.
D. that society is very rich.
Answer: A
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According to this Application, tariffs in the United States are very high on textiles, apparel items and footwear. These tariffs disproportionately impact lower-income households because
A) these products represent a higher fraction of consumption of lower-income households than higher-income households. B) the tariffs are only applicable to lower-income households. C) higher-income households tend to purchase products produced in the United States, which are not subject to tariffs. D) lower-income households tend to purchase more of these items than do higher-income households.
Which of the following insures deposits at banks?
A. The RTC. B. The FDIC. C. The FSLIC. D. The Federal Reserve.
Management's power in collective bargaining sessions rests on
A. The firm's market power in pricing its product. B. The ability to lock out workers by closing stores or factories. C. The ability to fire nonunionized workers. D. The company's stock valuation.
In which of the following years was there a recession?
A. 1942 B. 1950 C. 1965 D. 1973