When the Lorenz curve shifts closer to the diagonal, it indicates that
a. the rich are getting richer and the poor are getting poorer
b. total income is rising
c. the distribution of income is becoming more equal
d. the population is decreasing
e. the prices of goods that make up the Lorez curve are rising
C
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The textbook suggests that rent controls
A) actually contribute to the housing boom in an area where they are applied. B) actually contribute to the housing shortage in the area where they are applied. C) are used in a government kickback scheme. D) have no effect on the local housing market.
A nation's comparative advantage in the production of an item is determined by:
A. wage rates and other input costs. B. the total and marginal costs of producing the item. C. the opportunity cost of producing the item relative to a trading partner's opportunity cost. D. which country has already specialized in the production of the item.