Author Question: If a Lorenz curve for income moves rightward and becomes more bowed out over time, then A) the ... (Read 52 times)

vicky · **on:** Jun 29, 2018

If a Lorenz curve for income moves rightward and becomes more bowed out over time, then

A) the population is growing.
B) income is growing.
C) income is being more equally distributed.
D) income is being more unequally distributed.

Question 2

Consider an industry that produces an output Q with marginal private cost (MC) and marginal social cost (MSC) as given in the table:

Q MC MSC
1 2 4
2 4 7
3 6 10
4 8 13
5 10 16

Which of the following is TRUE?
A) The production of each additional unit results in a larger marginal external cost.
B) The production of each additional unit results in the same marginal external cost.
C) The production of each additional unit results in a lower marginal external cost.
D) There are no marginal external costs associated with the production of this good.