The above figure shows two Lorenz curves. Lorenz curve A shows the distribution of income and Lorenz curve B shows the distribution of wealth. Which statement below is CORRECT?
A) The Lorenz curve for wealth shows that wealth is distributed less equally because wealth does not include human capital.
B) The Lorenz curve for income shows that income is distributed less equally because income does not include income from stocks and bonds.
C) The Lorenz curves show wealth is greater than income.
D) The Lorenz curves show income is greater than wealth.
A
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Suppose that an individual has chosen not to work. Then a change in the wage rate:
A. creates a substitution effect, but no income effect. B. creates an income effect, but no substitution effect. C. creates both and income and substitution effect. D. creates neither an income effect nor a substitution effect.
Even though fixed costs do not affect the output decision, an increase in fixed costs results in a wider range of prices for which the firm operates at a loss
Indicate whether the statement is true or false
After an NFL team wins a Super Bowl the next year the tickets are much harder to find and more expensive. This is caused by a(n)
A. decrease in demand but the supply remaining the same. B. increase in demand but the supply remaining the same. C. increase in supply but the demand remaining the same. D. decrease in supply but the demand remaining the same.
A risk-averse person's expected utility function is
A) decreasing. B) convex. C) concave. D) a straight line.