Which statement about income inequality is true?
a. Income inequality is the disparity between those with higher and lower incomes.
b. Income inequality and poverty are synonymous terms.
c. Income inequality applies to the condition of people who cannot afford necessities.
d. Income inequality refers to the percentage of the population living below the poverty line.
a. Income inequality is the disparity between those with higher and lower incomes.
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An increase in currency held outside the banks is ________
A) a currency drain B) income C) a currency surplus D) wealth
An incumbent's threat to retaliate after a potential competitor enters the market will be taken seriously by potential competitors if
A) the incumbent can still earn a profit after carrying out the threat. B) the incumbent earns greater profit carrying out the threat than by accommodating entry. C) the potential entrant cannot earn a profit if the threat is carried out. D) the potential entrant's profit exceeds the incumbent's if the threat is carried out.
A monopolist would charge ____ prices and produce ____ output than would exist under perfect competition. a. higher; less
b. lower; more. c. higher; more. d. the same; the same.
A tax that varies directly with the income of the person—the higher the income, the higher the tax rate—is known as a(n)
a. regressive tax b. progressive tax c. proportional tax d. flat tax e. excise tax