What has happened to the location of the Lorenz curve of annual earnings over the past 35 years? Make a case that the Lorenz curve will shift leftward over the next 35 years. Make a case that it will shift farther to the right than its present location. Which of your two scenarios do you think is most realistic?
Q: Advocate the benefits of using monetary policy to control the economy.
A: A change in the money supply is known as monetary policy. By keeping an eye on price changes and…
Q: The MPs propose that we should eliminate the higher education debts of women. In line with the human…
A: Economy growth is made possible by human capital. Human capital growth in fields like science,…
Q: Continued monetary tightening 05 October 2022 The Monetary Policy Committee today increased the…
A: Committee members agreed that monetary conditions needed to continue to tighten until they are…
Q: Which of the following is NOT a category of fiscal policy? Group of answer choices government…
A: Fiscal policy is the policy under which the government changes the government spending or taxation…
Q: The TLC Yogurt Company has decided to capitalize on the exercise fad and plans to open an exercise…
A: Net Present Value: It is a measure of profitability used in capital budgeting to determine the…
Q: Suppose there are 500 identicsl competitivd firms producing widgets and assume the total cost curve…
A: Profit is referred as the difference between the total revenue and total cost of production . Profit…
Q: during the latter stages of a downswing in the South African business cycle. Manufacturing…
A: Business cycles are intervals of expansion followed by recessions in economic activity. The business…
Q: 14. In a market economy The allocation of scarce resources determines prices and prices in turn…
A: Answer to the question is as follows:
Q: 12 Study the following diagram and answer the question that follows. Expenditures (billions of…
A: Consumption function is consists of autonomous consumption and consumption dependent on Income. C…
Q: 13. According to the graph below, the equilibrium price in the market before the tax is imposed is ⠀
A: The equilibrium is established where the demand and supply are equal. The imposition of tax leads to…
Q: What is the arithmeti
A: Given return for last six years = 14% - 17 % - 14 % - 20 % - 16 % & 2 %
Q: Assume aggregate demand is represented by AD1 and full employment is $5.6 trillion. The equilibrium…
A: Full employment level output refers to the output that represents the natural state of economy or…
Q: Consider the market for fire extinguishers. d. If the external benefit is $10 per extinguisher,…
A: When a transaction involving a When a transaction involving a buyer and a seller has an effect on a…
Q: MPs are more interested in education policies than in childcare programs. The MPs propose that we…
A: According to the human Capitals model there is a causality betweens educational and health. When the…
Q: Question 7 If the prices of inputs changes, B D the SAS curve shifts. the AD curve shifts. the LAS…
A: The whole value of commodities or services in a market, sector, or economy is referred to as…
Q: Suppose the market for plastic bag is represented by the following equations: Qd = 1000-2p Qs = -20…
A: Equilibrium is reached where the demand and supply are equal. The external cost creates inefficient…
Q: Suppose that the demand function is y=-3x + 54. A. What is the highest price a consumer would pay…
A: A demand function shows the relationship between the price and quantity demanded. The law of demand…
Q: Which type of lending institute is either federal or state chartered? Credit unions Mutual…
A: A financial institution is an institution that gives services that people need to manage their…
Q: Use the cost and revenue data to answer the questions. Quantity Price Total Revenue Total Cost 15 90…
A: In a monopoly, Profit is maximised where MR = MC. MR = Marginal revenue MC = Marginal cost In a…
Q: Using your knowledge on time series, explain the following concepts: (a) Stationary and…
A: Time Series is define as the sequence of given observations taken at specific time intervals. Time…
Q: share your thought about the future of regulatory and market driven approaches to contain costs and…
A: A business or market approach that is primarily based on knowing the unique characteristics of the…
Q: Coins in people's pockets and purses are: included in M1, but not in M2. included in both M1…
A: M1 consists of Coins and currency in circulation , travellers checks , checkable deposits. M2…
Q: 3. A certain brand of vacuum cleaners can be purchased from several local stores as well as from…
A: Economic profit is the difference between the revenue from sales of goods and services and the…
Q: Campus Bookstore is the only textbook supplier in the town, a profit-maximizing business. Customer…
A: A monopoly is a sole producer of a good in the market thus acting as a price maker whereas in a…
Q: 9. Tariffs decrease the price of imported goods below the world price by the amount of the tariff.…
A: Disclaimer- “Since you have asked multiple questions, we will solve the first question for you as…
Q: New Zealand along with many other countries nas a progressive tax system. What is a proaressive tax…
A: A Progressive Tax is defined as a tax that tends to increase the average tax burden with an increase…
Q: Many police officer positions require the applicant to have a college degree, even though the tasks…
A: Discounting is the process of computing the present worth of a payment or a stream of payments that…
Q: Calculate the discounted payback period for the project. b) Calculate the Net Present Value of the…
A: The term "discounted payback period" refers to the length of time required to recover an initial…
Q: Assume the following: Explicit Cost = 50 implicit Cost = 25 What does Total Cost equal? O a. 25 b.…
A: Total cost is the sum of explicit cost and implicit cost. Explicit cost is the direct expenses or…
Q: Acme Manufacturing Co. and Compressors Institute of America, Inc. orally agreed that CIA would…
A: Given information CIA custom manufacturing a compressor for Acme Manufacturing Co. and Compressors…
Q: Let the IS equation be A 1-b where 1 -b is the marginal propensity to save, g is the investment…
A: IS curve is the goods market equilibrium and the LM curve is the money market equilibrium. For IS…
Q: Consider a lake found in the town of Center Barnstead, and then answer the questions that follow.…
A: Negative externality adversely affects its surrounding environment by increasing the social cost of…
Q: You get a 7.5% 60-day $3,000 loan. The lender uses a 365-day year and charges you a $300 set-up fee…
A: Simple interest refers to approach applied to determine the proportion of interest paid on a sum…
Q: Refer to Table 1. At an output level of $2,000 billion, the value of saving Group of answer…
A: Savings are the amount that is kept aside for future use. It is basically an act of not investing…
Q: What is the accumulated amount of a 10-year annuity paying ₱ 10,000 at the end of each year, with…
A: Given Annuity A=10,000 Time interval (n) =10 years Rate of interest (i)=15% Required: Future value…
Q: In a fictitious town of Fruitlandia, 4 individuals each buy apricots following their individual…
A: Individual demand is the demand of one person. Market demand is the demand of all person in the…
Q: the expected final equilibrium in Winter 2022-23, under the assumption of an extremely cold winter,…
A: Answer to the question is as follows:
Q: Suppose the information in the table is for a simple economy that produces and consumes only four…
A: Disclaimer: “Since you have asked multiple questions, we will solve the first 3 questions for you.…
Q: A bank features a savings account that has an annual percentage rate of r = 2.9% with interest…
A: The yearly/ annual rate yield (APY) is the genuine pace of return procured on investment, producing…
Q: A project consists of the following tasks, with task times in weeks. Use the data provided to…
A: * SOLUTION :- Given that ,
Q: If the annual inflation rate is 10% and the annual real interest rate is 20%, what is the annual…
A: Real interest rate is the rate of interest free of inflation. Inflation is the increase in price…
Q: 5. The market equilibrium point for a commodity occurs when 3,200 units are produced and sold at…
A: Equilibrium Point Quantity = 3200 Price = 124 According to the Question For consumers, if P =…
Q: The price elasticity of demand of a good depends in part on its relative necessity in comparison to…
A: Among other things, price elasticity depends upon the nature of the good. Nature in this sense…
Q: Process X is estimated to have a fixed cost of $35,000 per year and a variable cost of $60 per unit…
A: At break-even point the total cost equals total revenue. There will be no profits at this point
Q: Question 12 The quantity of real GDP supplied at full employment is called (A) short-run equilibrium…
A: Employment is a type of economic activity in which one individual is appointed by another to do a…
Q: Frank's Fajitas can produce 45 fajitas per hour with five workers and one grill. One more worker…
A: Marginal cost is the additional cost incurred in order to produce an additional unit of output.
Q: If the MPS in an economy is .4, government could shift the aggregate demand curve leftward by $50…
A: Aggregate demand consists of consumption spending , investment spending , government spending , and…
Q: 12. When a firm is maximizing profit it will necessarily be: A) maximizing profit per unit of…
A: Microeconomics refers to the branch of economics that studies the behavior of a single person or…
ash
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- The Lorenz curve for Bangladesh looks like this: Cumulative percentage of income 100 58.7 37.4 21.3 8.9 Bangladesh Lorenz Curve 20 60 80 Cumulative percentage of population 40 100 04 How much income do individuals in the second income quintile in Bangladesh receive?Q8.4) Formula for Gini Coefficient from Lorenz CurveA / A + BWhat does the A and B represent?QUESTION 43 The Gini coefficient can be approximated from the Lorenz curve by the g=A/(A+B), where A is the area between the Lorenz curve and the 45-degree line and A +B is the area under the 45-degree line. Consider a population with three members and an aggregate income of 100. Which of the following statements are correct? O When the incomes are (50, 50, 0), the approximated Gini coefficient is 0.5. When the incomes for the thre members are (100/3, 100/3, 100/3), the approximate Gini coefficient is 0. O When the incomes are (100, 0, 0), the approximated Gini coefficient is 1. O A gini coefficient of 1 implies complete equality.
- Which of these is true of the Lorenz curve? The further away it is from the 45 degree line the more unequal is distribution. The closer it is to the 45 degree line the more unequal is distribution.What is the age dependency ratio?The figure below shows the proportion of children in earnings quantile conditional on their father's earnings quantile in the US and Denmark, respectively. Based on this information, which of the following statements is correct? US I Child in poorest 20% I Child in richest 20% DENMARK 0.400 0.4 0.4 0.360 0.337 0.3 0.3- 0.253 0.2 0.2 0.167 0.161 0.098 0.1 0.1 0.074 Poorest 20% Richest 20% Poorest 20% Richest 20% Father's earnings quintile Select one: O a. In Denmark, it is far more difficult for the richest families to preserve their status for the next generation than in the US. O b. In the US, 7.4% of those from the poorest 20% of families managed to move up to become part of the richest 20%. O c. The figure suggests that there is very little governments can do to reduce intergenerational transmission of economic status. O d. The data provides support for the "American Dream", a term coined in 1931 by James Truslow Adams that refers to "a dream of social order in which each man and…
- RM2. Why is it more efficient for the government to offer employment insurnace than for private insurance companies? Why is Canada accused of treating EI as an income transfer program instead of an insurnace program? What are the various methods commonly used to measure poverty? Hoe do they differ? Which method does Canada use?Consider the Lorenz curves for income for Deneb and Elnath as shown in this figure: Lorenz curves for Deneb and Elnath cumullative income share (%) 8 8 2 2 2 2 2 2 2 2 100 90 80 70 60 40 30 Lorenz curve for Elnath 0 0 10 20 30 40 50 60 70 80 90 100 income percentiles Lorenz curve for Deneb [If the image above doesn't appear click here to open it in a new tab.] Which of the following statements is true? [Hint: You do not need to calculate any areas to answer this question correctly!] The relative income inequalities of Deneb and Elnath cannot be determined from the information given. Income inequality is more extreme in Deneb than it is in Elnath. Deneb and Elnath have the same degree of income inequality. Income inequality is more extreme in Elnath than it is in Deneb.What would happen to the Lorenz curve if it included wealth distribution?
- Brief explain about Gap hipothesis theoryDraw the Lorenz curve and compute the Gini index of a group whose annual incomes (in thousands of dollars) are given by the following frequency table. Value Frequency 30 2 50 4 60 5 90 4 100 3 120 2In the Lorenz curve, the final entry in the cumulative income column needs to be 0% 45% 100% $1,000,000