Which of the following observations regarding the Gini coefficient (G) is incorrect?
a. If G is one, the Lorenz curve would overlap the line of perfect income equality.
b. If G is zero, it represents perfect income equality
c. If G is one, it represents perfect income inequality
d. The closer G is to 1 the greater the degree of income inequality
a
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An important feature of money market mutual fund shares is
A) deposit insurance. B) the ability to write checks against shareholdings. C) the ability to borrow against shareholdings. D) claims on shares of corporate stock.
Beta in the CAPM is ____
a. one measure of the systematic risk of a stock b. estimated as the slope of a regression line between an individual security's returns and returns for the market index. c. useful in estimating the firm's cost of debt capital d. a and b only e. a, b, and c
If all countries specialize in producing goods for which they have a comparative advantage, then total world output will be lower
Indicate whether the statement is true or false
A public good
A. Is overproduced by the market. B. Is any good produced by the government. C. Causes government failure. D. Is subject to the free-rider dilemma.