Annual Income Data Would Be a Better Index of Economic

question 1

Multiple Choice

Annual income data would be a better index of economic inequality if

• A) all households filed tax returns revealing their real income.
• B) households were more different with regard to age and size characteristics.
• C) all households were more similar with regard to size, age, education, and other major factors that are linked to income.
• D) mathematicians could grasp the complexities of the calculations.

---

Definitions:

Selling Price

The price at which a product or service is sold to customers.

Extraction Cost

The expenses associated with the removal of resources or raw materials from their natural setting.

Optimal Quantity

The amount of a product or service that achieves the best balance between costs and benefits, maximizing utility or profit.

Extract

To remove or take out something by physical or chemical process, often used in reference to natural resources.