If everyone earned the same income, the Lorenz curve would be
A) a rectangular hyperbola.
B) a straight line from the origin at a 45-degree angle.
C) the horizontal axis.
D) very bowed from the diagonal.
Answer: B
You might also like to view...
International trade tends to lower the value of the multiplier because
A. imports fall as GDP increases. B. net exports fall as GDP increases. C. net exports tend to rise as GDP increases. D. exports fall as GDP increases.
Refer to Figure 2-13. Which two arrows in the diagram depict the following transaction: Stanley purchases the novel, "Night of Sorrows" for his summer reading pleasure
A) J and M B) K and M C) K and G D) J and G
Assuming no change in the effort curve of employees, the efficiency wage model implies that
A) the real wage is rigid and equals the efficiency wage. B) the real wage exceeds the marginal productivity of labor. C) an increase in the marginal productivity of capital will increase the real wage. D) the real wage is procyclical.
Economists refer to the lack of incentive that voters have to search for and obtain information to help make better political choices as the
a. shortsightedness effect. b. public-interest effect. c. free rider problem. d. rational-ignorance effect.