Discuss what you believe might be one of the disadvantages of using the Gini coefficient
What will be an ideal response?
While the Gini coefficient measures inequality of income, it does not measure inequality of opportunity. For example, some countries may have a social class structure (i.e. a caste system or other social arrangement) that may present barriers to upward mobility; this is not reflected in their Gini coefficients.
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If the price elasticity of demand for apples is greater than 1, an increase in apple prices will
A) raise total revenue. B) lower total revenue. C) not affect total revenue. D) either raise or lower total revenue, but it is impossible to determine which.
A resource is defined to be:
A. something of value. B. something that people respond to. C. a good or service. D. anything that can be used to make something of value.
The ratio (in physical units) at which two countries trade goods is known as the
a. opportunity cost b. marginal social cost c. price to earnings ratio d. comparative advantage ratio e. terms of trade
Which of the following observations concerning labor cost patterns over the last century is true?
a. Average real wages started rising after 1973. b. Hourly compensation rates have fallen dramatically. c. Compensation growth slowed markedly. d. Average hours worked per week have increased by almost 50 percent.