The study by economists Cox and Alm found that the 2006 pre-tax income of the richest fifth of U.S. households is
a. 5 times the pre-tax income of the poorest fifth.
b. 10 times the pre-tax income of the poorest fifth.
c. 15 times the pre-tax income of the poorest fifth.
d. 20 times the pre-tax income of the poorest fifth.
c
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Refer to Figure 4.1, which shows Molly's and Ryan's individual demand curves for compact discs per month. Assuming Molly and Ryan are the only consumers in the market, if the market quantity demanded is 15, the price must be
A) $0. B) $6. C) $9. D) $15.
In order to increase society's total welfare (social efficiency), a production process that produces a negative externality should be:
a. taxed. b. provided by the government. c. ignored. d. subsidized.
In the Full Employment and Balanced Growth Act of 1978, Congress set a target rate of unemployment. The nation achieves this target rate
a. in most years b. at least once a year c. only rarely d. in election years e. at least once every five years
Which of the following is the result of providers having more information about treatment alternatives than their patients do?
a. Adverse selection b. Externalities c. Principal-agent problem d. The substitution effect e. Rational ignorance