In drawing a straight-line production possibilities curve for an economy that produces oil and corn, we assume that resources (for example, the number of labor hours)
a. are fixed
b. increase at a constant rate
c. increase at an increasing rate
d. increase at a decreasing rate
e. are not uniform, such as a variety of skills and quality of work
A
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The Gini coefficient is measured by
A) summing up the total income earned by the population and dividing by the size of the population. B) summing up the cumulative income percentages on the Lorenz curve. C) using the formula: area between the line of perfect equality and the Lorenz curve ÷ the area under the line of perfect equality. D) using the formula: area between perfect inequality and Lorenz curve ÷ area between the line of perfect equality to the Lorenz curve.
Given the information that follows, how much are (a) accounting profits and (b) economic profits? Sales, $750,000; explicit costs, $450,000; return you could have earned by investing your money elsewhere, $50,000; wages that you and your family members could have earned doing the same work for another firm, $70,000.
What will be an ideal response?