In a Lorenz diagram for income, the line of equality shows
A) the most equitable income distribution.
B) how unequally incomes are distributed.
C) how much redistribution occurs.
D) the income distribution if everyone received the same income.
D
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A mathematical formula for the deficit would be
A. C + I + G ? transfers + taxes. B. C + I + G + transfers – taxes. C. I + G + transfers – taxes. D. G + transfers – taxes.
A weakness of the market system of resource allocation is that
a. such economies tend to be stagnant b. most participants in such an economy have low standards of living c. there are no limits on an individual's freedom of action d. it does not address the problem of initial inequities in endowments e. its participants are free to act according to their desires
The long run aggregate supply curve (LRAS) also represents
A. the full-employment level of output. B. the full-adjustment level of output. C. the full-information level of output. D. all of these.
A profit-maximizing monopolist always charges the highest price possible.
Answer the following statement true (T) or false (F)