The Gini coefficient measures:
A. income inequality.
B. poverty prevalence.
C. average income per person.
D. change in average income per person over time.
A. income inequality.
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If the area between the line of equality and the Lorenz curve is 1,250, and the entire area beneath the line of equality is 5,000, the Gini ratio is
A) 0.25. B) 4.00. C) 0.33. D) 0.80.
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What will be an ideal response?
Melissa is a self-employed lawyer who chooses a higher-priced restaurant 2 miles from home over a cheaper restaurant 15 miles from home. Which of the following is the most likely explanation for her behavior?
a. The opportunity cost of her time is very low. b. She doesn't take travel time into consideration. c. She doesn't like to cook or doesn't know how. d. The prices at the more expensive restaurant understate the opportunity cost of eating there. e. The higher monetary cost of the more expensive restaurant is offset by the higher opportunity cost of the lower-priced restaurant.
If a firm or a nation desires to maximize its output, each productive assignment should be carried out by those persons who...
What will be an ideal response?