In a perfectly equal distribution of income among a population, the Lorenz curve would:1. Form a straight line at a 45-degree angle from the origin2. Be a horizontal line at the top of the graph3. Lie entirely along the diagonal of the graph4. Form a vertical line at the maximum income level

If a country’s GDP is $10 trillion, and its consumption expenditure is $7 trillion, what is the value of its net exports if investment and government spending are both $2 trillion?1. -$2 trillion2. -$1 trillion3. $1 trillion4. $2 trillion

If a company’s stock price is $100 and its Price Earnings ratio is 10.  There are also, 10 million shares outstanding of the company.  What is the companies market cap?   1. $1 billion 2. $10 billion 3. $100 billion 4. $100 million

Which of these is the most ELASTIC in demand? 1. textbooks for school 2. car needed to go to work 3. life saving medicine 4. McDonald hamburgers

Which group of individuals are strong against the ideas of taxation 1. liberals 2. progressives 3. democrats 4. libertarians

In which of the following situations would supply be the most elastic?   A real estate developer in Boston is looking to build condos on the beach An auto parts manufacturer is operating at full capacity An online book company that sells its ebooks to students A hotel has all of its rooms booked for each night of the next 3 months

Which of these is the best example of complementary goods? 1. beef and chicken 2. rice and potatoes 3. cars and bikes 4. peanut butter and jelly

If Shawn can produce more donuts in one day than Sue can produce in one day, then Shawn has a comparative advantage in the production of donuts Sue has a comparative advantage in the production of donuts Shawn has an absolute advantage in the production of donuts Sue has an absolute advantage in the production of donuts

If a government subsidize producers of electric cars, 1. demand will increase 2. demand will increase 3. supply will increase 4. supply will decrease

A competitive market is one in which there is only one seller, but there are many buyers are many sellers, and each seller has the ability to set the price of their product are many sellers, and they compete with one another in such a way that some sellers are always being forced out of the market are so many buyers and so many sellers that each has a negligible impact on the price of the product