The Gini coefficient for the United States in 1980 was 0.403. In 2014, the coefficient was equal to 0.480. This means that
A) income inequality increased from 1980 to 2014.
B) there was a decrease in the amount of government transfer payments from 1980 to 2014.
C) cuts in federal income tax rates in the early 1980s and 2001 helped to reduce income inequality.
D) per capita income in the United States rose from 1980 to 2014.
A
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Refer to Figure 4-7. The figure above represents the market for iced tea. Assume that this is a competitive market. If the price of iced tea is $1
A) not enough consumers want to buy iced tea. B) the quantity supplied is economically efficient but the quantity demanded is economically inefficient. C) economic surplus is maximized. D) the quantity supplied is less than the economically efficient quantity.
What are the two distinguishing characteristics of a public good?
a. nonrivalry in consumption and nonexcludability b. indivisibility in production and excludability of nonpaying customers c. provision by government and funding through taxation d. mass production and comparative advantage
Normative economics is concerned with
A) value judgments. B) opinions. C) cause-effect relationships. D) observations that can be proved. E) both a and b
Suppose the US is in a recession while foreign countries that trade with the US are not. How will this affect the US?
A. US imports will fall, US exports will rise, and AD will fall B. US imports will fall, US exports will rise, and AD will rise C. US imports will rise, US exports will fall, and AD will fall D. US imports will fall, US exports will fall, and AD will remain unchanged