In Country X, the highest 10 percent of families account for 70 percent of the income. In Country Y, ...

In Country X, the highest 10 percent of families account for 70 percent of the income. In Country Y, the highest 10 percent of families account for 20 percent of the income. In this example:
 a. Country Y would be located on the line of perfect inequality.
  b. income is more equally distributed in Country Y.
  c. income is more equally distributed in Country X.
  d. Country X would be located on the line of perfect equality.
  e. the degree of income inequality is equal in both the countries.

QUESTION 2

The function of economic institutions is to:
 a. determine the profit margin of producers.
  b. determine how much an economy benefits from trade.
  c. define the environment in which we can trade.
  d. define the terms of trade between nations.

QUESTION 3

The marginal cost curve intersects the average total cost curve at the firm's most efficient point of production.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 4

In the short run, if a firm's price is greater than its AVC but less than its ATC, the firm should:
 a. shut down immediately because it is generating an economic loss.
  b. shut down temporarily because it is generating an economic loss.
  c. continue operating because it is generating an economic profit.
  d. continue operating even though it is generating an economic loss.

QUESTION 5

For an economy, the greater the value of the Gini co-efficient, _____.
 a. the greater will be the GDP.
  b. the greater will be the income inequality
  c. the greater will be the revenue of the government from direct taxes
  d. the greater will be the equality in the distribution of income and wealth
  e. the lesser will be the expenditure on the part of the government

QUESTION 6

Identify the correct statement from the following.
 a. Modern telecommunications turned cities like Omaha and Bangalore into new resources for the world.
  b. Being only 10 hours away from most of the industrial world enabled Anchorage, Alaska to become the busiest cargo airport in the world.
  c. Call centers in the U.S. set up shop in small towns to prevent large-scale migration to bigger cities.
  d. Unless a city is in an advantageous location for conducting any form of business, it is difficult to boost its economy in today's world.