Which of the Following Is True About Income Mobility

question 86

Multiple Choice

Which of the following is true about income mobility?

• A) With time, most of those with low incomes at a point in time move up the income ladder only to be replaced by others who are youthful, inexperienced, or the victim of current misfortune.
• B) Recent studies indicate that there is virtually no relationship between the relative income position of grandparents and their grandchildren.
• C) Both a and b are true.
• D) Neither a nor b is true.

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Definitions:

Oligopoly

A market structure in which only a few sellers offer similar or identical products.

Monopoly Outcome

A market situation where a single firm dominates production and sales, leading to potential inefficiency and higher prices.

Nash Equilibrium

A situation in which economic actors interacting with one another each choose their best strategy given the strategies that all the other actors have chosen.

Price Effect

The impact that a change in the price of a good or service has on consumer demand for that good or service.