In the figure above, if income were distributed equally across all households, the richest 20 percent of households would receive ________ of total income
A) 45 percent
B) 25 percent
C) 20 percent
D) 15 percent
C
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The interest rate effect that helps explain the slope of the aggregate demand curve arises because
A) an increase in the price level lead to decreases in interest rates, which induces more borrowing and hence raises planned real expenditures. B) interest rates and total planned real expenditures are unrelated. C) an increase in the price level boosts interest rates, which discourages borrowing and hence reduces planned real expenditures. D) a decrease in the price level boosts interest rates, which discourages borrowing and hence frees up income for more planned real expenditures.
For economists, "myopia" refers to:
A. visual nearsightedness. B. people's difficulty in conceptualizing the future. C. people's tendency to put too much emphasis on the future and ignore important present concerns. D. people's tendency to focus on microeconomic concerns because of an inability to conceptualize macroeconomics.
If the price of a good falls by 10% and the percentage decrease in the total amount consumers spend on the good is 10%, then the good is
A. unit elastic. B. elastic. C. inelastic. D. perfectly inelastic.
An example of a price ceiling would be the government setting the price of sugar
A. at the equilibrium market price. B. above the equilibrium market price. C. below the equilibrium market price. D. none of the above