Using the Lorenz curve, the degree of income inequality is measured by
a. The line connecting all points for which a given percentage of families receives exactly the cumulative percentage of income
b. the distance of the Lorenz curve from the line of perfect equality
c. the flat diagonal line that applies to a perfectly elastic demand curve
d. the number of times the Lorenz curve crosses the line of perfect equality
e. is derived by dividing the number of people below the poverty line by the total population
B
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An increase in the income tax rate ________ the value of the tax multiplier
A) decreases B) increases C) has no effect on D) may increase or decrease
Does a person who works in a brothel sell productive services?
A) Yes, if the service is demanded. B) Yes, but only in states where brothels are legal. C) No, because the service is immoral. D) No, because the service does not help the overall economy.