How equal is the distribution of personal income by households in the United States?
What will be an ideal response?
There is considerable income inequality in the distribution of personal income in the United States. The data from 2011 can be cited to support this case. For example, in 2011 average households made $69,821 or less in income. About 21.0% of households had incomes of $100,000 or more, while 25.0% had income less than $25,000.
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We often witness prices of water, gasoline and construction materials surge in a region just before a major storm hits. Some call this "price gouging." In the economic way of thinking, however, those higher prices are caused by
A) an increase in supply and an increase in demand. B) an increase in supply and a decrease in demand. C) a decrease in supply and an increase in demand. D) a decrease in supply and a decrease in demand. E) practices that are not connected to underlying supply and demand conditions.
________ means people are more unhappy when they suffer losses than they are happy when they achieve gains
A) Loss fundamentals B) Loss aversion C) Loss leader D) Loss cycle
In the simple Keynesian model (no money market) assume that equilibrium output falls short of potential output by 300 units and the MPC = 0.8 . The size of the tax cut needed to reach full employment is
a. 30. b. 60. c. 75. d. 300.
Suppose you could choose how many hours a week you will work and you are currently earning $50 an hour and working 40 hours a week. If you got a pay increase to $60 an hour and decided to work 45 hours, then we may conclude that your
A. income effect outweighed your substitution effect. B. substitution effect outweighed your income effect. C. substitution effect was equal to your income effect.