The above figure shows two Lorenz curves. Suppose both Lorenz curves measure wealth. Then, the curves show that wealth is
A) greater along Lorenz curve A.
B) greater along Lorenz curve B.
C) distributed more equally along Lorenz curve A.
D) distributed more equally along Lorenz curve B.
Ques. 2In the above figure, between x = 2 and x = 3, what is the slope of the line?
A) 1
B) -1
C) 2
D) 3
Ques. 3Markets
A) facilitate trade.
B) allow traders to enjoy gains from trade.
C) coordinate price information between buyers and sellers.
D) All of the above answers are correct.
Ques. 4The above figure shows the marginal benefit and marginal cost curves for a public good. The quantity that has the best prospect of winning in an election by well-informed voters is
A) A.
B) B.
C) C.
D) zero units supplied.
Ques. 5Along an indifference curve
A) the marginal rate of substitution is constant but not equal to zero.
B) the consumer does not prefer one consumption point to another.
C) the marginal rate of substitution is equal to 0.
D) the consumer prefers some of the consumption points to others.
Ques. 6The reservation wage is the
A) highest wage for which a person is willing to supply labor.
B) lowest wage for which a person is willing to supply labor.
C) wage for which a person is willing to work full time.
D) wage for which a person is willing to work overtime.
Quick Reply
