When we compare shares of income earned by U.S. households, which of the following statements about the distribution of income is true?
A) Shares of income decrease as we move from the lowest quintile to the highest quintile.
B) Shares of income increase as we move from the lowest quintile to the highest quintile.
C) Shares of income remain fairly constant as we move from the lowest quintile to the highest quintile.
D) Shares of income decrease as we move from the lowest quintile to middle quintile, and then decrease from the middle quintile to the highest quintile.
B
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Political creative destruction is likely to be opposed:
A) equally in all types of economies. B) more in a market economy than in a command economy. C) more in an economy with inclusive institutions than in an economy with extractive institutions. D) less in an economy with inclusive institutions than in an economy with extractive institutions.
Industrialization in advanced economies suggests that rising productivity is responsible for
(a) a drop in the number of laborers employed in the primary sector. (b) a smaller percentage of the total labor force working in the secondary sector. (c) a significant rise in the number of people working in the tertiary sector. (d) all of the above.
The vertical long-run Phillips curve
a. implies that the Fed cannot influence the unemployment rate in the long run. b. implies that the Fed can influence the unemployment rate in the long run. c. implies that the Fed can influence both the unemployment rate and the inflation rate in the long run. d. implies that the Fed can reduce the unemployment rate in the long run only at the expense of higher inflation rate. e. none of the above.
If government debt is held internally, the debt burden can be passed on to future generations
Indicate whether the statement is true or false