Refer to the below graph. If the Lorenz curve shifted from (d) to (b), then the Gini ratio and the degree of income inequality would:
A. Increase
B. Decrease
C. Remain constant
D. Become negative
B. Decrease
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With real-world examples, illustrate the various factors that can cause a shift in the demand curve of a commodity
What will be an ideal response?
The figure above shows the market for airline tickets. If airline tickets are a normal good, then the recession in 2008 that caused people's incomes to decrease lead to a shift from
A) D0 to D1. B) D1 to D0. C) S0 to S1. D) S1 to S0.
A production function is
a. a technique for determining the most profitable rate of output. b. the relationship between a combination of inputs and a quantity of output. c. an important factor in determining the shape of the long-run supply curve. d. All of these.
Crony capitalism is present when
a. businesses are either implicitly or explicitly prohibited from making donations to political candidates. b. businesses either implicitly or explicitly provide political decision-makers with contributions and other forms of political support in "exchange" for government favors that will improve their profitability. c. rule of law is present and government officials treat all citizens alike. d. government officials spend taxpayer funds only on productive projects.