As the value of the Gini coefficient approaches zero
A) the percentage of the population under the poverty line decreases.
B) the percentage of the population under the poverty line increases.
C) income distribution becomes more unequal.
D) income distribution becomes less unequal.
D
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A depreciation of the Mexican peso relative to the U.S. dollar would ________ Mexican firms that are exporting goods to the United States and would ________ Mexican firms that have borrowed in U.S. dollars
A) help; help B) help; hurt C) hurt; help D) hurt; hurt
If the total cost of production for 1000 widgets is $2000 and marginal cost is constant at $1, what is the average cost if 2000 widgets are produced?
A) $2 B) $1.50 C) $1 D) $0.50
If gas prices suddenly change from $2 a gallon to $4 a gallon, larger, more remote stores with lower prices are ________ to have a(n) ________ in the number of customers.
A) likely; decrease B) not likely; decrease C) likely; increase D) not likely; cha
Statistical data provided by the U.S. Department of Transportation shows that the median income of individuals traveling on the nation's bus systems is $18,000 compared to $65,000 for those who normally travel by air. This finding is best explained by which of the following statements?
a. Persons with high income are more likely to fly because the opportunity cost of their time is generally higher than those with lesser income. b. Traditionally, lower income groups prefer slower methods of transportation. c. Wealthy individuals own stock in the airlines and, therefore, receive preferential treatment. d. Low-income groups are generally located near bus stations; wealthy groups congregate around airports.