Recall Application 2, "Growth Need Not Cause Increased Inequality," to Answer

question 162

Multiple Choice

Recall Application 2, "Growth Need Not Cause Increased Inequality," to answer the following questions:
-According to the application, the U.S. experience refutes Kuznets' theory because:

• A) income inequality has decreased faster than what the theory predicted.
• B) income inequality did not follow the predicted "U" pattern.
• C) income inequality has continued to increase as income kept on growing.
• D) taxes have grown faster than personal income.

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Definitions:

Outsourcing

The practice of hiring third parties to conduct services or produce goods that were traditionally performed by the company's own staff.

Positive Statement

An objective statement based on facts that can be tested and verified.

Education

The process of receiving or giving systematic instruction, especially at a school or university, that aims to improve knowledge and develop skills.

Wage Rate

The amount of money paid for a specific unit of time or work, often expressed per hour or per piece of work done.