Understanding GDP and Income Distribution

What does a Lorenz curve close to the diagonal line indicate?

• Greater inequality

• Perfect inequality

• Greater equality

• Economic growth

What does a Gini coefficient of 0.0 represent?

• Perfect inequality

• Economic growth

• Perfect equality

• High inflation

What does GDP per capita fail to consider?

• Economic growth

• Population size

• Income distribution

• Employment rate

What does the Gini index of 100% mean?

• Perfect equality

• Perfect inequality

• Economic stability

• Low inflation

What is one organization that provides information to compare country GDPs or inequality levels?

• United Nations

• World Bank

• International Monetary Fund

• World Health Organization

What does the 'C' in the aggregate demand formula AD = C + I + G + (X – M) stand for?

• Capital

• Consumption

• Currency

• Cost

In the formula AD = C + I + G + (X – M), what does 'I' represent?

• Imports

• Investment

• Interest

• Income

What does 'G' represent in the aggregate demand formula AD = C + I + G + (X – M)?

• Government spending

• Gross income

• General expenses

• Goods sold

What does 'M' represent in the formula AD = C + I + G + (X – M)?

• Money supply

• Marginal cost

• Imports

• Market value

Which factor is described as a continued increase in the general price level of goods and services?

• Interest rates

• Inflation

• Deflation

• Consumer confidence