Compared to a sampling of other developed nations, the U.S. income distribution is more unequal than many others. What accounts for this?
A) The lowest-income families in the United States earn much less than the lowest-income households in other nations.
B) Marginal income tax rates are much higher in the United States than in any other nation.
C) The highest-income families in the United States earn much more than the highest-income households in other nations.
D) Other nations manipulate their data to look better.
Answer: C
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If the price of pork rinds falls, the substitution effect due to the price change will cause
A) an increase in the quantity of pork rinds demanded. B) a decrease in the quantity of pork rinds demanded. C) an increase in the demand for pork rinds. D) an increase in the demand for corn chips, a substitute for pork rinds.
The number and availability of discount brokers has grown rapidly since the mid-1970s. The efficient markets hypothesis predicts that people who use discount brokers
A) will likely earn lower returns than those who use full-service brokers. B) will likely earn about the same as those who use full-service brokers, but will net more after brokerage commissions. C) are going against evidence suggesting that full-service brokers can help outperform the market. D) are likely to outperform the market by a wide margin.
Real wages more accurately reflect the payment to labor because they are adjusted for the effects of inflation.
Answer the following statement true (T) or false (F)
Last year you purchased 20 shirts at $15 apiece, 30 USBs at $12 each, and 5 sweaters at $25 apiece. This year you buy 20 shirts at $20 apiece, 30 USBs at $12 apiece, and 5 sweaters at $20 apiece. If last year's index was 100, this year's index is
A. 91.3. B. 109.5. C. 102.0. D. 9.5.