Question

In: Economics

The closer the income Lorenz curve is to the line of equality, A) the more equal...

The closer the income Lorenz curve is to the line of equality,

A) the more equal is the income distribution.

B) the less equal is the income distribution.

C) the more unfair is the income distribution.

Most people will not pay privately for police services because the

A) marginal social benefits are less than the marginal social cost.

B) marginal private benefits are greater than the marginal social cost.

C) marginal private benefits are less than the marginal private cost.

D) marginal external benefits of security are zero.

E) marginal social benefits equal the marginal social cost.

D) the richer are the highest 5 percent of households.

E) the poorer are the highest 5 percent of households.

If the capture view of regulation is correct, we would expect to see

A) profits decrease when an industry is regulated.

B) profits increase when an industry is regulated.

C) costs decrease when an industry is regulated.

D) prices fall when an industry is deregulated.

E) prices rise when an industry is deregulated.

Expert Solution

Rahul Sunny answered 9 months ago

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