Which of the following is accurate regarding income statistics?
a. Current annual income is also an accurate indicator of relative economic status for the same individual over a longer period such as a decade or lifetime.
b. When there is substantial income mobility, one's current position in the income distribution will not be a very good indicator as to what one's position will be a few years in the future.
c. Recent studies indicate that there is a strong positive relationship between the relative income position of a family and the relative income position of their children and grandchildren.
d. Even though annual income data camouflage the fact, high-income earners generally maintain their status year after year, while those with low current incomes tend to stay poor year after year.
B
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Refer to Figure 12-2. Why is the total revenue curve a ray from the origin?
A) because the firm can sell its product at a constant price B) because revenue increases at a decreasing rate C) because the firm must lower its price to sell more D) because revenue increases at an increasing rate
A tax on the wages paid to an employee is called the:
A. payroll tax. B. personal income tax. C. corporate income tax. D. excise tax.
Inflation favors
A. lenders. B. borrowers. C. neither borrowers nor lenders. D. both borrowers and lenders.
Most goods whose purchases are included in the investment component of GDP are used to produce other goods in future periods
a. True b. False Indicate whether the statement is true or false