A Lorenz curve measures
A) the benefits received through welfare programs.
B) the actual income distribution and compares it to an equal income distribution.
C) the degree to which income taxes are regressive.
D) the effect of flat taxes on income distribution.
B
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In the consumption function model, the 45-degree line represents where
A) the real disposable income is equal to zero. B) planned real saving is equal to zero. C) planned real consumption spending is equal to zero. D) planned real saving is greater than actual real savings.
If the government implements a binding price ceiling on insulin, this will have all of the following effects on the market for insulin except
A) a decrease in economic surplus. B) a decrease in producer surplus. C) an increase in deadweight loss. D) a more efficient equilibrium.