Consider an Economy with a Particular Distribution of Income

question 27

Multiple Choice

Consider an economy with a particular distribution of income. Over the next 10 years, the income of all households increases by $20,000. How will the Gini coefficient change over those 10 years?

• A) The Gini coefficient will increase.
• B) The Gini coefficient will decrease.
• C) The Gini coefficient will stay the same as all households received the same increase in income.
• D) The Gini coefficient will become more negative.
• E) It is impossible to determine how the Gini coefficient will change as it will depend on the original income distribution.

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Definitions:

Disulfiram

A drug employed to aid in the treatment of persistent alcohol dependency by inducing a severe reaction to ethanol (alcoholic beverages).

Drinking Cues

External or internal triggers that prompt the desire or urge to consume alcohol.

Antabuse Therapy

A treatment regimen involving the administration of disulfiram, used to support the recovery of people with alcohol dependence by producing unpleasant effects when alcohol is consumed.

Addiction

Addiction is a psychological and physical inability to stop consuming a chemical, drug, activity, or substance, even though it is causing psychological and physical harm.