Today, the Gini coefficient of income inequality for the United States is about .5. In 1975, it had been about .4. What do these numbers tell us?
A. Wealth is distributed less equally than income.
B. The number of rich people has fallen.
C. The official definition of poverty has changed.
D. Income has become more unequally distributed.
Answer: D
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As it relates to R&D, the imitation problem is that:
A. patents, copyrights, and trademarks hinder imitation and thus limit economically desirable diffusion. B. brand names create entry barriers for would-be competitors. C. diffusion of innovation occurs more slowly than is desirable from society's perspective. D. a firm's rivals may be able to copy its new product or process innovation, reducing the original firm's return on R&D.
If a firm increases its output quantity when marginal revenue is less than marginal cost then its profits will:
A. Be positive B. Increase C. Decrease D. Be negative
An increase in the wage rate will change
A. the price the firm charges for the product, but it will not affect the demand for any of the inputs. B. the amount of labor employed, and it may also change the amount of other inputs employed. C. the firm?s profit-maximizing level output, but not its usage of inputs. D. only the amount of labor hired.
Emotions like guilt and sympathy:
A. are irrelevant to economic decision-making. B. can solve commitment problems, but generally reduce players' payoffs. C. can solve commitment problems. D. reduce the likelihood that a transaction will maximize total economic surplus.