Suppose 10 percent of the families receive 10 percent of the income, 20 percent of the families receive 20 percent of the income, and so forth. The Lorenz curve would be
A) a straight line at a 45-degree angle from the origin.
B) a straight line at a 30-degree angle from the origin.
C) the most bowed curve possible.
D) the horizontal axis.
Answer: A
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Which of the following is most likely to lead to an increase in the value of the dollar?
A) decline in U.S. interest rates B) increase in imports to the United States C) decrease in exports from the United States D) increase in U.S. interest rates compared to foreign interest rates
With the aging of the American population, it might be necessary to reduce the medical benefits to elderly. How do you feel about this idea?
What will be an ideal response?
A common tool for restricting trade through taxation is:
A. a tariff. B. immigration restrictions. C. international waters use policies. D. quota.
A debt that rises faster than nominal GDP will impose the following opportunity costs in the future:
a. A permanently higher tax burden. b. A period of inflation. c. Reduced government outlays relative to GDP d. Higher taxes relative to GDP. e. All of the above.