The Lorenz curve of perfect equality is a

04 Jun The Lorenz curve of perfect equality is a

Question
ECON CH 13-16
Question 1

The Lorenz curve of perfect equality is a

vertical line

upward sloping line from the origin

U-shaped line

horizontal line

Question 2

The federal government employs an absolute rather than a relative measure to determine poverty.

True

FAlse

Question 3

The federal government began to measure poverty in the

1960s

1970s

1980s

1990s

Question 4

Household wealth is defined as income minus liabilities.

True

False

Question 5

Labor market discrimination on the basis of sex or race is usually person-specific rather than a general labor practice.

True

False

Question 6

In 2004, the top 5 percent of households earned approximately

Question 7

The curve that indicates how far actual income distribution differs from a perfectly equal income distribution is called the

Lorenz curve

Garibaldi curve

GDP

Herfindahl Index curve

Question 8

Which of the following is a disincentive to leave welfare?

decrease in real income

lower taxes

higher incomes

all of the above

Question 9

Unemployment insurance is a form of in-kind transfer payment to reduce poverty.

True

False

Question 10

A minimum wage rate job raises a family out of poverty.

True

False

Question 11

If everyone had the same income, the Lorenz curve would become the line of income equality.

True

False

Question 12

The New Economy is one of

durable goods

services

information

manufacturing

Question 13

The term “recession” refers to a

period of decline in real GDP over two consecutive quarters

fall in the general level of real wages over two consecutive quarters

fall in the CPI over two consecutive quarters

fall in the rate of increase of real per capita GDP

Question 14

Interest rates usually rise during the contraction phase of the business cycle.

True

False

Question 15

Through 2005, the most serious U.S. trough since the Great Depression was the one that occurred in

Question 16

The statistical indicators of business cycle changes contain

Question 17

During a trough in the business cycle, the economy eventually reaches the bottleneck stage.

True

False

Question 18

During the expansion phase of the business cycle, we would normally expect to see real income ________, price level ________, and unemployment rate_______.

increasing; increasing; increasing

increasing; decreasing; decreasing

increasing; increasing; decreasing

falling; increasing; increasing

Question 19

Which of the following would not be considered an internal force that helps move the economy out of a trough?