Economists can illustrate an uneven distribution of income by sketching a Lorenz curve that lies above the diagonal
a. True
b. False
Indicate whether the statement is true or false
False
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Which of the following represents causality rather than association?
a. In years that fashion dictates wider lapels on men's jackets, the stock market grows by at least 5 percent. b. Unemployment falls when the AFC champion wins the Super Bowl. c. Interest rates are higher in years ending with a 1 or a 6. d. Quantity demanded goes up when price falls because lower prices increase consumer purchasing power, and because some consumers of substitute goods switch.
Figure 9.9 depicts a market for electricity. S1 is the supply curve without the external costs. S2 is the supply curve with the $T tax. Assume electricity production incurs external costs. If the government imposes a pollution tax, the price of a mega-watt of electricity will increase by:
A. PA - PB. B. PA - PC. C. PB - PC. D. 1/2 (PA - PC).