Refer to the Graph Shown

question 22

Multiple Choice

Refer to the graph shown. The middle quintile (the middle fifth) of families earn:

• A) 10.7 percent of the income.
• B) 15.3 percent of the income.
• C) 22.1 percent of the income.
• D) 32.6 percent of the income.

Know the relationship between price and quantity demanded or supplied and the economic laws governing them.

Understand the characteristics and types of corporations.

Recognize the accounting implications of share transactions and treasury stock.

Comprehend the legal and financial distinctions between common and preferred stock.

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Definitions:

Unemployment

The situation when individuals who are capable of working are unable to find a job.

Normative

Relating to principles or rules of right conduct or the distinction between right and wrong; ethical.

Minimum Wage

The lowest legal salary that employers can pay workers, intended to protect workers from unduly low pay.

Positive Economic Statement

An objective statement based on facts and evidence that can be tested and validated, concerning how the economy works.