Explain how the expansion of winner-take-all markets can affect the degree of income inequality
Top performers in these markets reap far greater rewards than do others who are only slightly less
productive. As these markets expand, the income distribution in our economy will become more unequal,
as the rewards for performance become more highly concentrated in the hands of the few.
You might also like to view...
The demand schedule is a price list for a fixed basket of consumer goods following a particular format
a. True b. False Indicate whether the statement is true or false
_____ allow exclusive use of an identifier, such as a brand name, and can be renewed indefinitely
a. Patents b. Trademarks c. Copyrights d. Licenses
Medicaid and food stamps are
a. available only to the elderly b. part of Social Security c. forms of in-kind assistance d. forms of cash assistance e. transfer payments to the poor
An increase in the marginal propensity to save from .1 to .2 will cause
A) an increase in the multiplier and a given change in autonomous consumption (c0 ) to have a smaller effect on output. B) an increase in the multiplier and a given change in autonomous consumption (c0 ) to have a larger effect on output. C) a reduction in the multiplier and a given change in autonomous consumption (c0 ) to have a smaller effect on output. D) a reduction in the multiplier and a given change in autonomous consumption (c0 ) to have a larger effect on output.