Andy observes that the income distribution between the richest and poorest people in the population has remained fixed for decades. He concludes that the rich stay rich and the poor stay poor. Is this a valid conclusion, or has Andy missed something?
What Andy has missed is the possibility that individuals are mobile between the various classifications of rich and poor. It could be that people move in and out of these classifications all the time. While the relative numbers may not change, this does not signify the degree of mobility within these groupings.
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Child poverty is
A. much more of a problem in France, Germany, and Japan than it is in the U.S. B. less of a problem in the United States than in Canada, Britain, or Italy. C. more of a problem in Sweden, Denmark, and Ireland than it is in the U.S. D. much more of a problem in the U.S. than in virtually all other industrialized countries.
According to the World Bank and the International Monetary Fund, which of the following countries has shown the greatest rate of economic growth in the past two decades?
A) China B) Germany C) United States D) Mexico
The marginal physical product (MPP) is calculated by
A) dividing total physical product by labor. B) dividing the change in total physical product by the change in the input. C) dividing the change in total cost by the change in labor. D) the difference between the output of skilled and unskilled workers.
In perfect competition, a firm's ________ curve is horizontal.
A. total cost. B. total revenue C. marginal cost D. marginal revenue