Many argue the poor are getting poorer, at least in a relative sense. Evidence that contradicts this is that
A. household spending of the lowest twenty percent of households relative to the highest twenty percent of households has held constant over the last thirty years.
B. the official poverty level of income has increased over the years.
C. the pretax distribution of income is more equal than the after-tax distribution of income.
D. household income of the lowest twenty percent of households relative to the highest twenty percent of households has fallen over the last thirty years.
Answer: A
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The saving and investment equation holds only when the federal budget is balanced
Indicate whether the statement is true or false
Unlike the Classical economists, Keynes believed that money could affect real economic activity through its effects on
A) the price level. B) the interest rate. C) savings. D) velocity.
Which of the following might cause an upward shift of the modern Phillips curve?
A) an increase in oil prices B) an increase in the price of imports C) wage agreements that include compensation for inflation D) all of the above E) none of the above
The Value of Call Monitoring Comcast's call center had a problem with unresolved incidents. Customers who called in for technical help often had to make follow-up calls because the first recommended solution did not work. Since the call center staff
were expected to handle an average of 10 calls per hour, Comcast suspected that calls were being terminated before the complaint had been resolved. As a possible solution, they hired supervisors to randomly listen into calls so as to better monitor inappropriate call terminations at a cost of $8,000 per month. This cut down the need for follow-up calls and, more importantly, increased customer retention. The number of customers who called in a complaint and would terminate services within three months was cut from 150 to 130 . How large must the present value of a retained customer's contribution margin be for additional monitoring to be profitable?