In the United States the degree of individual income mobility (that is, the degree to which people move from higher to lower, or lower to higher, income groupings) is:
a. rigid in both directions
b. flexible in both directions.
c. flexible upward but rigid downward, since high income perpetuates itself from generation to generation.
d. flexible downward but rigid upward, since most low-income people never rise significantly above the poverty level.
b
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Which of the following equations best represents the concept of constant returns to scale?
A) 3Y = AF(3K, 3L) B) 2Y = 2AF(2K,2 L) C) 1/4Y = (AF / 4 )(4K, 4L) D) 5Y = [AF(K, L)] / 5
Upon getting a big promotion, Sally decides to buy a house in the neighborhood she grew up in as a child. In fact, the house she buys used to belong to a neighbor of hers, and so she's certain it's in good shape and well worth the $200,000 she pays for it. The only thing Sally needs to do is replace all the gutters for $1,000, which she happily does. How will GDP be affected by Sally's recent purchases?
A. Consumption will increase by $210,000. B. GDP will increase by $1000. C. Consumption will increase by $1,000, and investment will increase by $200,000. D. Investment will increase by $201,000.
In the late 1970s and early 1980s the goals of fiscal policy were
A. completely attained. B. largely attained. C. largely unattained. D. completely unattained.
An elasticity of supply of 2.7 means that:
A. quantity supplied changes 2.7 units for each 1 percent change in price. B. supply is inelastic. C. quantity supplied changes 2.7 percent for each 1 percent change in price. D. price changes by 2.7 percent for each 1 percent change in quantity supplied.