What are the major criticisms of the Lorenz curve?
What will be an ideal response?
The Lorenz curve typically is presented in terms of the distribution of money income and ignores income in kind. It also does not account for differences in family sizes, the number of income earners in the family, or the ages of the families. The Lorenz curve also reflects income before taxes rather than disposable income, and fails to measure income from the underground economy.
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Use the following graph for a competitive market to answer the question below.
A price floor of $10 per unit will result in a
A. shortage of 200 units. B. surplus of 200 units. C. 50 units being traded. D. No shortage or surplus
Perfect price discrimination will lead a firm to produce up to the point where price equals marginal cost, the efficient level of output
Indicate whether the statement is true or false
During a recession, liberal economists would be most in favor of
A. spending cuts. B. spending increases. C. tax cuts. D. tax increases.
Explain the major problems that occurred with the implementation of the SMP
What will be an ideal response?