Answer the question on the basis of the following information. Suppose the members of population A, consisting of Al, Bob, Curt, Doris, and Ellie, receive annual incomes of $5,000, $2,500, $1,250, $750, and $500, respectively. Refer to the given
information and this information as well. The members of population B, consisting of Fred, George, Holly, Irma, and Joan, receive incomes of $4,000, $3,000, $1,250, $950, and $800, respectively. We:
A. can say that the income of population B is less equally distributed than that of population A.
B. can say that the income of population B is more equally distributed than that of population A.
C. cannot make a meaningful comparison of the income distributions of populations A and B.
D. can say that the poorest quintile of population B receives 12 percent of total income.
Answer: B
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To calculate GDP it is necessary to add up the market value of all the ________ produced within a country during a year
A) intermediate goods and services produced and all the final goods and services produced B) intermediate goods and services produced C) goods but not services produced D) final goods and services produced E) goods and services produced
According to the Solow model, technological progress will cause output to increase for two reasons. What are these two reasons?
What will be an ideal response?
All firms in a competitive industry have the following long-run total cost curve:
C(q) = q3 – 10q2 + 36q where q is the output of the firm. a. Compute the long run equilibrium price. What does the long-run supply curve look like if this is a constant cost industry? Explain. b. Suppose the market demand is given by Q = 111 – p. Determine the long-run equilibrium number of firms in the industry.
Even-handed enforcement of contracts fuels economic prosperity because it
a. permits individuals to invade or infringe on the property rights of others. b. increases transaction costs. c. increases market uncertainty and the probability of contract violations. d. promotes gains from trade by keeping transaction costs low.