In an economy where one person receives all the income, the Lorenz curve is
a. the two sides of the right angle triangle
b. the diagonal
c. a U-shaped curve that lies below the diagonal
d. a U-shaped curve that lies above the diagonal
e. a downward sloping line from 100 percent of income (on the vertical axis) to 100 percent of population (on the horizontal axis)
A
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Reverse auctions
A) require customers to fly at unpopular times. B) allow firms to identify customers that have very elastic demand curves. C) Both A and B. D) are used to keep high paying customers from spending too little money.
A lump-sum tariff imposed on foreign competitors will:
A. decrease the profits of domestic firms when demand is high. B. have no impact on domestic firms' profits when demand for domestic goods is high. C. increase the profits of domestic firms when demand is high. D. always remove foreign competitors from the market.
Recall the Application about the effects of increasing state level Earned Income Tax Credit (EITC) on child health in the United States to answer the following question(s).Recall the Application. How does EITC affect government health expenditures?
A. EITC raises private insurance coverage, causing a corresponding decrease in public health insurance expenditures in Medicaid and Children's Health Insurance Program (CHIP). B. EITC has no effect on public health insurance expenditures in Medicaid and Children's Health Insurance Program (CHIP). C. EITC raises private insurance coverage and a similar increase in public health insurance expenditures in Medicaid and Children's Health Insurance Program (CHIP). D. EITC lowers private insurance coverage, causing a corresponding increase in public health insurance expenditures in Medicaid and Children's Health Insurance Program (CHIP).
Patents
A. create monopolies and are thus efficient. B. are granted for a period of 10 years in the United States. C. slow the flow of benefits from research and development to consumers. D. All of the above are correct.