A utility-maximizing consumer will choose a collection of goods
a. represented by a point below her budget line
b. represented by a point above her budget line
c. for which the marginal utility from each good is the same
d. for which the marginal utility divided by the price is the same or each good
e. for which the total utility from each good is the same
D
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If we know that the area between the Lorenz curve and the diagonal is 2,500, and the area of the square (the triangles above and below the diagonal) is 10,000 . then the Gini coefficient is
a. 0 b. 0.25 c. 0.50 d. 0.75 e. 1.0
Referring to a production possibilities curve and the goods being compared, depict the economic event. The SARS epidemic spreads rapidly throughout Toronto, Canada claiming millions of lives (capital vs. consumer goods).
A. A movement from a point inside the curve to a point on the curve B. A movement from a point on the curve to a point inside the curve C. A shift in the entire curve to the right (outward) D. A shift in the entire curve to the left (inward)