If a single household received all income, the Gini coefficient would

a. have a value of zero.
b. be identical to the Lorenz distribution.
c. have a value of 1.
d. have a value of infinity.


c. have a value of 1.

Economics

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The natural rate hypothesis states that the economy will self-correct back to the natural rate of unemployment, so that a move along a short run Phillips curve will not be permanent

a. True b. False Indicate whether the statement is true or false

Economics

If a McDonald's Big Mac cost $4.50 in the United States and 3.60 euros in the Euro area, then purchasing-power parity implies the nominal exchange rate is how many euros per dollar?

a. 1.25 If the value is less than this, it costs more dollars to buy a Big Mac in the U.S. than in the Euro area. b. 1.25 If the value is less than this, it costs fewer dollars to buy a Big Mac in the U.S. then in the Euro area. c. .80 If the value is less than this, it costs more dollars to buy a Big Mac in the U.S. than in the Euro area. d. .80 If the value is less than this, it costs fewer dollars to buy a Big Mac in the U.S. than in the Euro area.

Economics

In corporations, owners are __________________ and managers are ________________

A. agents; principals B. stockholders; bondholders C. agents; employees D. principals; agents

Economics

Contrast “supply-side” economics with “demand-side” fiscal policy.

What will be an ideal response?

Economics