Which of the following can be demonstrated using a Lorenz curve?
a. The size of total production in a household
b. All possible consumption combinations of goods that someone can afford
c. The social rate of return of antipoverty programs
d. Income distribution across a population
d. Income distribution across a population
Every Lorenz curve diagram begins with a line sloping up at a 45-degree angle. The points along this line show what perfect equality of the income distribution looks like, while the other lines show actual distribution for the years in question.
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People who buy futures on the commodity market are
A) increasing, not reducing, their personal risk. B) reducing, not increasing, their personal risk. C) either reducing or increasing their personal risk, depending on the circumstances. D) creating added risk for others in society. E) showing they are essentially indifferent to risk.
Which of the following activities is excluded from GDP, causing GDP to understate a nation's production?
A. The services of health care workers B. The services of military personnel C. Goods and services produced in the underground economy D. The construction of new buildings