Use the Following to Answer Question(s): Income Distribution

question 12

Multiple Choice

Use the following to answer question(s) : Income Distribution

-(Exhibit: Income Distribution) Curve A represents:

• A) a line of unequal income distribution.
• B) a line of equal distribution of income.
• C) a distribution of income where 20 percent of the families get 60 percent of the income, and 60 percent of the families get 20 percent of the income.
• D) the ideal distribution of income, according to market economists.

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Definitions:

Perfect Competitor

A firm in a perfectly competitive market, where there are many buyers and sellers, all products are identical, and no single buyer or seller can influence the market price.

Perfect Competitor

A theoretical market structure where numerous small firms compete against each other with no single company controlling the market price.

Long Run

A period in economics sufficient for all markets to adjust, including production, labor, and capital.

Marginal Revenue

The additional income received from selling one more unit of a product.