A Lorenz curve measures
A) the benefits received through welfare programs.
B) the actual income distribution and compares it to an equal income distribution.
C) the degree to which income taxes are regressive.
D) the effect of flat taxes on income distribution.
B
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In 1997, the Thai government was unable to maintain its exchange rate given the amount of international reserves
Indicate whether the statement is true or false
Which of the following describes a situation in which demand must be elastic?
a. The price of pens rises by 10 cents, and quantity of pens demanded falls by 50. b. The price of pens rises by 10 cents, and total revenue rises. c. A 20 percent increase in the price of pens leads to a 20 percent decrease in the quantity of pens demanded. d. Total revenue does not change when the price of pens rises. e. Total revenue decreases when the price of pencils rises.
In which of the following situations would GDP not change?
A. More and more domestic consumers opt to build a new home, rather than spending the same money on an already existing home. B. As domestic consumers buy fewer tobacco products, tobacco manufacturers instead sell their products, at the same price, to foreign buyers. C. Domestic consumers begin to buy less imported wine, and instead spend just as much money on domestically produced wine. D. Without reducing the number of automobiles sold, domestic automobile producers decide to reduce the number of automobiles they produce, rather than producing cars that would end up as unsold inventory.
Accountants use only ________ costs in their computations of short-run total cost.
a. opportunity b. implicit c. explicit d. variable