Using the Lorenz curve, the degree of income inequality is measured by
a. The line connecting all points for which a given percentage of families receives exactly the cumulative percentage of income
b. the distance of the Lorenz curve from the line of perfect equality
c. the flat diagonal line that applies to a perfectly elastic demand curve
d. the number of times the Lorenz curve crosses the line of perfect equality
e. is derived by dividing the number of people below the poverty line by the total population
B
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Suppose Bob leaves his $50,000-a-year job as a financial advisor to P.E.T.S. and starts his own business selling pet-care products. In the first year, his accounting profit is $70,000. Based on this level of success, Bob should:
a. return to his old job because his economic profit is negative. b. return to his old job because his economic profit is smaller than his accounting profit. c. return to his old job because his economic profit is less than his old salary. d. stay with his new firm because his economic profit is positive. e. stay with his new firm because accounting profit is positive.
The European Union competition authorities can examine mergers between each of these firms except which one?
A) two firms located in the United States that sell their products exclusively in the United States B) two firms that have subsidiaries or branches in the European Union C) two firms located in the United States that sell their products in the European Union D) two firms located in the European Union that sell their products in the United States and the European Union
According to the World Bank, roughly 800 million people are classified as being in ________ poverty.
A. severe B. extreme C. tremendous D. subsistence
Which of the following is true?
A. The role of government grew most rapidly from 1920 to 1933. B. The role of government grew most rapidly during Franklin Roosevelt's Administration from 1960 to 1975. C. The seeds of the expansion of the federal government's economic role were sown during the Nixon Administration from 1933-1945. D. The seeds of the expansion of the federal government's economic role were sown during the Roosevelt Administration from 1933-1945.