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

question 6

Multiple Choice

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

-(Exhibit: Income Distribution) Curve B indicates that:

• A) the lowest 60 percent of the families get 40 percent of the income.
• B) the lowest 80 percent of the families get 40 percent of the income.
• C) the lowest 80 percent of the families get 80 percent of the income.
• D) income is quite equally distributed.

---

Definitions:

Production Possibilities

Various combinations of the amounts of different goods that can be produced within a given economy, given technological constraints and available resources.

Isocost Line

A graph line representing all combinations of a firm's inputs that cost the same total amount.

Expenditures

The financial outflows or payments made by an individual, organization, or government unit, usually for goods or services.

Average Product

The output per unit of input, calculated by dividing total output by the quantity of inputs used.