Firms in oligopoly markets are unable to collude effectively because cooperation is difficult with a large number of firms.

A Lorenz curve measures

A) the benefits received through welfare programs. B) the actual income distribution and compares it to an equal income distribution. C) the degree to which income taxes are regressive. D) the effect of flat taxes on income distribution.

If foreign holdings of U.S. dollars decrease, holding all else constant,

A) the balance on the U.S. current account will decrease. B) the U.S. balance of trade will decrease. C) the balance on the U.S. financial account will decrease. D) the balance on the U.S. capital account will decrease.