Which of the Following Mostly Likely Happened to the Joneses

question 100

Multiple Choice

Which of the following mostly likely happened to the Joneses if they were in the top 1 percent of earners in 2009?

• A) They saw a decrease in income.
• B) They saw a large tax increase.
• C) They saw little or no decline in net worth.
• D) None of the above answers is correct.

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Definitions:

Long Run

A period of time sufficient for all adjustments to be made in an economy or market, considering all possible changes in production.

Average Costs

The total cost of production divided by the number of units produced, used to determine the average expense per unit.

Marginal Costs

The increase or decrease in the total cost that results from producing one more or one less unit of a good or service.

Marginal Productivity

The additional output that results from using one more unit of a specific factor of production, holding all other factors constant.