Which of the following statements is correct?

A. The closer the Lorenz curve is to the line of equality, the more unequal is the distribution of income.

B. The farther the Lorenz curve is from the line of equality, the more unequal is the distribution of income.

C. If the Lorenz curve crosses the line of equality the distribution of income is more unequal at high income levels than at low income levels.

D. The Lorenz curve for wealth is closer to the line of equality than the Lorenz curve for income

How does the Gini ratio relate to the Lorenz curve? Why can't the Gini ratio exceed $1$? What is implied about the direction of income inequality if the Gini ratio declines from $0.42$ to $0.35$ ? How would one show that change of inequality in the Lorenz diagram?

Which of the following statements is correct?

a. The benefits that accrue to a monopoly firm's owners are equal to the costs that are incurred by consumers of that firm's product.

b. The deadweight loss that arises in monopoly stems from the fact that the profit-maximizing monopoly firm produces a quantity of output that exceeds the socially-efficient quantity.

c. The deadweight loss caused by a monopoly is similar to the deadweight loss caused by a tax on a product.

Suppose that the United States has a Gini ratio of 0.41 while Sweden has a Gini ratio of 0.31. Which country has a more equal distribution of income?

a. The United States.

b. Sweden.

c. They are actually equal.

Which of the following statements is correct?

A. Labor earns wages and entrepreneurship earns bonuses.

B. Land earns interest and capital earns rent.

C. Entrepreneurship earns interest and capital earns profit.

D. Capital earns interest and labor earns wages.

Which of the following statements is correct?

a. The operation of a market system eventually results in an equal distribution of income

b. Producers are "sovereign" in a market economy because they determine what is produced

c. The market system is efficient at allocating resources, but not at allocating products

d. Freedom of choice and enterprise are essential elements of the market system

A Lorenz curve plots the ________.

A. trend in the cumulative percentage of income received by each quintile against the trend in the number of households

B. average income received by each quintile against the number of households in the quintile

C. percentage of total income received by each quintile against the percentage of households in the quintile

D. cumulative percentage of income against the cumulative percentage of households

What are the four phases of the business cycle? How long do business cycles last? Why does the business cycle affect output and employment in capital goods industries and consumer durable goods industries more severely than in industries producing consumer nondurables?

The value of marginal product of labor increases if ________.

A. more labor is hired

B. more of the good is produced

C. the market price of the good produced rises

D. using a new technology reduces the demand for labor

A firm’s demand for labor is determined by ________. A. the market wage rate B. the price of the good that the firm produces and the wage rate it pays C. the marginal product of labor and the market wage rate D. the price of the good that the firm produces and the marginal product of labor

What are the four phases of the business cycle?

Why would collective bargaining, mediation, and arbitration be better than strikes, lockouts, and injunctions as ways of settling wage disputes?

To maximize profit, a firm ________.

A. uses the quantity of land at which the rental rate equals the value of marginal product of land

B. balances the rental rate of capital against the wage rate of labor

C. uses the quantity of capital at which the marginal revenue equals the value of marginal product of capital

D. uses the quantity of capital at which the suppliers’ expected profit equals the value of marginal product of capital

Suppose the year 2000 is the base year for a price index. Between 2000 and 2020 prices double and at the same time your nominal income increases from $40,000 to$80,000.

What is the value of the price index in 2000?