Personal disposable income is pre-tax income that flows directly to households
Indicate whether the statement is true or false
FALSE
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How do you explain why income inequality in the United States has been increasing? a. New technologies raise the MRP of educated workers, while having no (or a much smaller effect) on the MRP of uneducated workers
b. The MRP of rich workers increases more slowly than the MRP of poor workers. c. The labor supply of poor workers shifts to the left, while the labor supply of rich workers shifts to the right. d. Many talented U.S. workers, earning high incomes, are lured away by firms located in other countries that are paying considerably higher wage rates. e. Minimum wage laws have raised the minimum wage rates.
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD1 the result in the long run would be:
A. P4 and Y1. B. P4 and Y2. C. P5 and Y1. D. P5 and Y2.
Suppose that real domestic output in an economy is 20 units, the quantity of inputs is 10, and the price of each input is $4. Answer the following question on the basis of this information. Refer to the information. The level of productivity is:
A. 20. B. 10. C. 5. D. 2.
Which of the following should be used to compare the incomes of countries with sizable differences in cost of living?
A) Gross national product B) Income per working age population C) Exchange rate-based measure of income per capita D) PPP-based measure of income per capita