Refer to the figure below, which shows four different Lorenz curves (I, II, III, and IV). Which point would indicate that the top 40% of households earned 60% of the nation's total income?
A. a
B. b
C. d
D. e
B. b
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Which of the following is a microeconomic topic?
i. K-Mart's decision to close stores that are not making a profit ii. Home Depot's choice to hire more full-time employees because its sales increased iii. Delta Airlines changes its fares. A) i only B) ii only C) i and iii D) ii and iii E) i, ii, and iii
Which of the following statements is NOT true regarding DeBeers' rise to monopoly power in the diamond market?
a. DeBeers produces about 40 percent of the world's raw diamonds and controls another 30 percent. b. DeBeers achieved dominance in this market by gaining control of South Africa's Kimberley "pipe," the world's largest source in the late nineteenth century. c. DeBeers carefully limited the amount of diamonds it released into the market. d. DeBeers did not worry about diamonds being discovered elsewhere because it already had full control of the industry in South Africa.
Supply and demand curves can only reflect
a. total social costs b. private, or internal, costs and benefits c. external costs and benefits d. external benefits e. external costs
To know whether the dollar is overvalued, we need to know
A) what foreign currency the dollar is being compared with. B) the real interest rate in the United States and the real interest rate in whatever country's currency the dollar is being compared with. C) the equilibrium exchange rate between the dollar and the foreign currency the dollar is being compared with. D) whether Federal Reserve monetary policy is expansionary or contractionary. E) There is not enough information to answer the question.