The Lorenz curve shows the:
a. growth of income over time compared to potential growth of income.
b. relative percentage of income going to each of the resources.
c. demand for unskilled versus unskilled labor.
d. actual cumulative percentage of income received compared to a perfectly equal cumulative percentages of income.
QUESTION 2The beginning of the formal budget process is signified by:
a. in the form of the Economic Report of the President.
b. in a report followed shortly by the Economic Report of the President.
c. at the beginning of the fiscal year.
d. in a report that should be voted up or down within 60 days.
e. in a report that requires a two-thirds vote for ratification.
QUESTION 3If the price of a good increases compared to the base year, then the price level also increases.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 4Which of the following correctly describes the Lorenz curve?
a. The Lorenz curve shows that the increasing income inequality in the U.S. society is actually good for the economy.
b. The Lorenz curve shows the growth rate in real median family income over time.
c. The Lorenz curve shows the cumulative distribution of family income, ranked from the poorest to the richest families, and compares that curve with the straight line indicating perfectly equal income distribution.
d. The Lorenz curve shows the cumulative distribution of family income, ranked from the richest to the poorest families, and compares that curve with the ideal of having all income go to the richest 5 percent of society.
QUESTION 5The President's budget is presented to Congress:
a. in the form of the Economic Report of the President.
b. in a report followed shortly by the Economic Report of the President.
c. at the beginning of the fiscal year.
d. in a report that should be voted up or down within 60 days.
e. in a report that requires a two-thirds vote for ratification.
QUESTION 6A chain-weighted index recognizes the fact that the composition of output changes over time.
a. True
b. False
Indicate whether the statement is true or false
Quick Reply
