In an economy where the poorest quintile of the population receives 5 percent of the income, the Lorenz curve at the quintile
a. is the diagonal
b. registers 5 percent of the income
c. lies above the diagonal
d. registers 95 percent of the income
e. of the richest quintile must be 95 percent of the income
B
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If velocity is 6 and the quantity of money is $2 trillion, what is nominal GDP?
A) $12 trillion B) $6 trillion C) $3 trillion D) $333 billion
Assume that Sofia's marginal utility from pizza consumption is 10 utils and the price is $2.00 per slice. Further, assume that her marginal utility from scone consumption is 20 utils and the price is $3.00 per scone. Which of the following is true? a. With her existing budget she should increase her consumption of pizza
b. With her existing budget she should increase her consumption of scones. c. She is currently maximizing her utility and should not change the amount of consumption for either good with her current budget. d. If her budget increases, she should increase her consumption of pizza but not scones. e. If her budget increases, she should increase her consumption of scones but not pizza.
For a firm operating in a competitive market, both marginal revenue and average revenue exceed the market price
a. True b. False Indicate whether the statement is true or false
“To choose is to lose” is another way to describe which concept in economics?
a. scarcity of resources b. tangible benefits c. marginal thinking d. opportunity cost