Which of the following is TRUE regarding the distribution of wealth and the distribution of income?
A) The distribution of wealth is a less accurate measure of inequality because it excludes human capital.
B) The distribution of wealth is a more accurate measure of inequality because it includes houses.
C) The distribution of income is a less accurate measure of inequality because it excludes the value of things you own.
D) The distribution of income is a less accurate measure of inequality because not everyone has a job.
A
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The quantity that sellers wish to sell tends to ________ as price increases, and so the supply curve is ________ sloping.
A. increase; upward B. decrease; downward C. decrease; upward D. increase; downward
In constructing the Human Development Index, high income levels are given less than proportionate weight because
a. Items bought by rich people are luxuries, not necessities. b. United Nations bureaucrats are prejudiced against the rich. c. Dollars received by rich people may have a lower marginal utility than dollars received by poor people. d. Items bought by rich people create more pollution than those bought by the poor. e. All of the above are valid reasons.
A good that has qualities that are easy for a consumer to assess in advance of a purchase is called
A. a credence good. B. a persuasive good. C. an experience good. D. a search good.
What appears to be the immediate cause of most changes in the business cycle from the perspective of most economists?
What will be an ideal response?