Country A has a more equal distribution of income than country B if
A) country A's Lorenz curve is closer to the line of equality than is country B's Lorenz curve.
B) country B's Lorenz curve is closer to the line of equality than is country A's Lorenz curve.
C) country A's Lorenz curve is just as close to the line of equality as is country B's Lorenz curve.
D) None of the above because it is impossible to compare income inequalities across countries.
A
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If the U.S. interest rate falls at the same time there is an increase in British real GDP, which of the following would happen in the market for British pounds?
a. A rightward shift of the demand for pounds curve, a rightward shift of the supply of pounds curve, a larger number of pounds traded, and an indeterminate effect on the dollars per pound exchange rate. b. A rightward shift of the demand for pounds curve, a rightward shift of the supply of pounds curve, a larger number of pounds traded, and an increase in the dollars per pound exchange rate. c. A rightward shift of the demand for pounds curve, a rightward shift of the supply of pounds curve, a larger number of pounds traded, and a decrease in the dollars per pound exchange rate. d. A leftward shift of the demand for pounds curve, a rightward shift of the supply of pounds curve, a larger number of pounds traded, and an indeterminate effect on the dollars per pound exchange rate. e. Cannot be determined without additional information.
Bob just got laid off and now has no income. We can assume that his demand for all:
A. all normal goods will increase. B. all inferior goods will increase. C. all inferior goods will decrease. D. all normal goods will stay the same.