Which is distributed more equally: income or wealth?
What will be an ideal response?
The income distribution is much more equal than the wealth distribution. The poorest 50 percent of wealth holders own only 1.1 percent of wealth and the richest 10 percent own about 75 percent of wealth. For income, the poorest 40 percent of households receive about 12 percent of total income and the richest 20 percent of households receive about 50 percent of total income.
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Suppose the economy is producing below potential GDP and the Federal Reserve implements the appropriate change in monetary policy, but not until after the economy has started to recover from the recession. In this situation there is a real danger that
A) the Fed's expansionary policy will result in too small of an increase in GDP. B) the Fed's expansionary policy will result in too large of an increase in GDP. C) the Fed's contractionary policy will result in too large of a decrease in GDP. D) the Fed's contractionary policy will result in too small of a decrease in GDP.
The only type of business that faces unlimited liability is a sole proprietorship
Indicate whether the statement is true or false
Assume that the hourly price for the services of personal trainers has risen and sales of these services have also risen. One can conclude that
A) personal trainers are deliberately charging high prices because they provide services for wealthy clients. B) the demand for personal trainers has increased. C) the law of demand has been violated. D) the number of personal trainers has increased.
The marginal propensity to consume (MPC) is typically
a. less than zero or greater than 1.0 b. equal to zero c. equal to 1.0 d. between -1.0 and 1.0 e. between zero and 1.0