Some economists prefer to look at the distribution of consumption rather than that of income. A Review of Economic Studies article in 2006 reported that consumption inequality in the U.S. is:

A. About the same as the income inequality

B. Worse than the income inequality

C. Less severe than the income inequality

D. Highly unstable from one year to the next

C. Less severe than the income inequality

Economics

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In the aggregate production function, Y represents real GDP, K represents the capital stock, L represents the quantity of labor, and A represents an index of efficiency. Which of the following equations represents the aggregate production function?

A) Y = (K × L) / A B) Y × A = (K × L) C) Y = AF(K, L) D) Y = (K × L) = A /FY

Economics

Suppose that a lawn mowing services production function for lawns mowed in a week is M = (LK)1/2, where L is labor hours and K is the amount of capital (mowers and trimmers). The expansion path depends on

a. the wage rate only. b. the rental rate only. c. both the wage and rental rates. d. neither the wage nor rental rates.

Economics