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.
C
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Consider the perfectly competitive firm in the above figure. At what price will long-run equilibrium occur?
A) $11 B) $12 C) $22 D) $23
The CPI bias arises from all of the following items except ________
A. the introduction of new goods and services B. the improved quality of goods C. the goods and services bought by poor people D. consumers' responses to price changes