Which of the following statements regarding the Lorenz curve is FALSE?
A) A Lorenz curve is a geometric representation of the distribution of income.
B) A Lorenz curve that is perfectly straight represents complete income equality.
C) The less bowed is a Lorenz curve, the less equally income is distributed.
D) The more bowed is a Lorenz curve, the more unequally income is distributed.
C
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Charitable activity _____
a. is a Pareto superior move b. is a Pareto optimal move c. is unnecessary given today's redistribution policies d. is unaffected by free riding
The official Federal Reserve strategy for implementing its monetary policy objectives is spelled out in the
A) Federal Reserve Board (FRB) Decree. B) Federal Reserve Bank Cooperative (FRBC) Proposal. C) Federal Advisory Committee (FAC) Statement. D) Federal Open Market Committee (FOMC) Directive.
By focusing the customers on the price of a product, you
a. Increase your chances of engaging in a price war with your competitors b. Make the customers more price sensitive to the product c. Make the demand for the product more elastic d. All of the above
The median-voter model implies that a political office seeker will:
A. adopt more extreme views when seeking his or her party's nomination than when running against the other party's opponent. B. adopt less extreme views when seeking his or her party's nomination than when running against the other party's opponent. C. favor extensive government spending because demand curves for public goods are added vertically rather than horizontally. D. favor the private resolution of externality problems rather than governmental intervention.