Much Attention Is Being Paid to the Issue of Rising

question 81

Multiple Choice

Much attention is being paid to the issue of rising income inequality.A serious aspect of this issue,especially in the United States and the United Kingdom ,is that even though average per capita income has been growing,

• A)a larger proportion of households fall below the poverty line.
• B)high-income earners are paying much higher rates of income tax.
• C)the vast majority of the economy's total income growth has accrued to the highest income earners.
• D)low- and middle-class households are not earning enough income to pay income tax.
• E)incomes in these countries are not growing as fast as in other OECD countries.

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Definitions:

Residual Income

The income that remains after deducting all costs, including the cost of capital, from the revenues of a business, investment, or project.

Invested Capital

The total amount of money that has been invested into a company by its owners and creditors, often used in ROI calculations.

Investment Centre

A business unit or division within an organization that is responsible for its own revenues, expenses, and assets, and is evaluated based on its return on investment.

Profit Margin

A financial metric indicating the percentage of revenue that exceeds the cost of goods sold, used to assess a company's financial health.