The horizontal and vertical axes of the Lorenz curve respectively measure:

a. total income and total expenditure as cumulative percentages.
b. total income and total population as cumulative percentages.
c. total population and total expenditure as cumulative percentages.
d. total expenditure and total income as cumulative percentages.
e. total population and total income as cumulative percentages.


e

Economics

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Borrowers and lenders make transactions based on the

A) expected real interest rate less the expected rate of inflation. B) real interest rate. C) expected real interest rate. D) expected nominal interest rate.

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Tourists in foreign countries are often charged more for hand-made items at tourist shops compared to the local customers. Why?

A) The tourists are typically less informed than the local customers. B) The tourists typically have fewer available alternatives compared to the local customers. C) The shop owners can usually identify tourists. D) For all of the above reasons.

Economics

The greater the risk associated with a particular outcome, the ________ likely they will purchase insurance, and the ________ money they are willing to pay for the insurance.

A) more; more B) less; more C) less; less D) more; less

Economics

What is producer surplus? How is it different from consumer surplus?

Economics