The Gini ratio is a measure of

In a country without foreign trade and income taxes, if the government decreases autonomous spending and autonomous taxes by 50 then total expenditures and output will

A) increase by 50 if the MPC is 1. B) decrease by 50 for any value of the MPS greater than zero. C) decrease by 100 if the MPS is 0.5. D) increase by 200 if the MPS is 0.25.

Suppose technical change makes it cheaper for cable television suppliers to supply their service. The capture theory would predict that the regulators would

A) allow the firms to capture the savings and would lower price only if the firms asked them to. B) force the firms to pass the savings on to consumers in the form of lower prices. C) force the firms to pass the savings on to consumers in the form of better service. D) force the firms to pass some of the savings on to consumers and permit them to keep some of the savings for themselves.