Some Economists Criticize the Lorenz Curve Because It

question 30

Multiple Choice

Some economists criticize the Lorenz curve because it

• A) includes too many things in measuring income, such as food stamps, housing aid, and other government programs.
• B) does not account for the effect of age on a family's income.
• C) measures unreported income earned in the underground economy.
• D) uses after-tax income when pre-tax income is more appropriate.

Understand and use financial tables and formulas to find present and future values.

Calculate the effective interest rate required to achieve a financial goal.

Understand the conditions required for a cash flow series to be considered an annuity.

Distinguish between different types of annuities and apply appropriate formulas for their valuation.

---

Definitions:

Trade Restrictions

Measures imposed by governments to control the exchange of goods and services across its borders, affecting international trade.

Monetary Supply

The total amount of money available in an economy at a specific time, including currency, coins, and balances held in checking and savings accounts.

Policy Changes

Modifications or adjustments to public policies or regulations, typically aiming to address social, economic, or environmental issues.

Fed

The Federal Reserve System, which is the central banking system of the United States.