Exhibit 29-2
This graph depicts the Lorenz curve for two countries, country 1 (Lorenz curve 1) and
country 2 (Lorenz curve 2).The Gini coefficient associated with Lorenz curve 1 appears
to be ____________ than the Gini coefficient associated with Lorenz curve 2.This
information indicates that the income distribution is ______________ equal in country
2 than in country 1.
a. lower; less
b. higher; less
c. lower; more
d. higher; more
In the textbook, economics is defined as the science of scarcity.
a. True
b. False
Exhibit 34-1
The opportunity cost of one unit of X in country B is
a. 1 unit of Y.
b. 0.33 units of Y.
c. 2 units of Y.
d. 20 units of Y.
Which of the following statements is false?
a. There are always opportunity costs to making choices.
b. Because of scarcity, choices must be made.
c. Elementary education at public schools is free.
d. When government builds a new highway, taxpayers end up with less of some of the
things they would otherwise have.
An advance in technology commonly refers to the ability to produce
a. the same output with a smaller quantity of resources.
b. more output with a fixed quantity of resources.
c. more output with a greater quantity of resources.
d. both a and b
e. both b and c
According to the data provided in this table, what is the slope of the line between points
C and D, if these data were graphed with X on the horizontal axis and Y on the vertical
axis?
a. -4.00
b. -0.25
c. 4.00
d. 0.25
e. none of the above
Exhibit 20-5
For graph (3), what is the price elasticity of demand going between $2.00 and $1.50?
a. 1.0
b. 0
c. 50.0
d. 0.02
Exhibit 38-2
If the closing price of Dancer’s stock on the previous day was $34.25, what value goes
in blank (B)?
a. 34.85
b. 34.00
c. 34.75
d. 34.50
e. There is not enough information given to answer this question.
Exhibit 22-2
What is the average total cost of producing 90 units of output?
a. $4.75
b. $1.17
c. $1.07
d. $2.11
e. There is not enough information provided to answer the question.
According to public choice theorists, people in the market sector and people in the
public sector have __________, and (but) sometimes act differently because of different
__________ arrangements in the two sectors.
a. different motives; institutional
b. the same motives; institutional
c. different views of politics; equilibrium
d. the same motives; equilibrium
e. none of the above