The above table shows the distribution of wealth and income in Miseria. The Lorenz curve for wealth would
A) intersect the horizontal axis at 100 percent.
B) bow outward more to the right than does the Lorenz curve for income.
C) lie parallel to the line of equality.
D) become flatter as one moves from left to right.
B
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If a graph has a line that shows the amount of outsourcing in the last ten years, it is known as
A) a pie chart. B) a demand curve for outsourcing. C) a time-series graph. D) a supply curve of outsourcing.
In official government statistics, the GDP deflator is actually calculated using:
A. a method called a chain-weighted index. B. the ratio of nominal GDP to real GDP from the year before it. C. a simpler approach, so the results are easily comparable. D. the value of a market basket that households typically purchase.
If investors can cover themselves in the forward market, they will take advantage of interest rate differentials by:
a. buying assets (lending) denominated in the high-interest rate currency, and selling assets (borrowing) in the low-interest rate currency. b. removing funds from both investments. c. turning over their investment portfolio to an expert in one of the two nations. d. selling assets denominated in high-interest rate currency and buying assets in the low-interest rate currency.
If a positive permanent supply shock were to occur, the resulting equilibrium would be a:
A. higher level of output at lower prices. B. lower level of output and prices. C. higher level of output and prices. D. lower level of output at higher prices.