Which of the Following Contributed to the Increase in Income

question 76

Multiple Choice

Which of the following contributed to the increase in income inequality among families in the United States during the 1980s and 1990s?

• A) An increase in the highest marginal tax rates that forced high income earners to work more in order to maintain their income.
• B) An increase in the proportion of both single-parent and dual-earner families.
• C) A decrease in the size of the earnings differential between college graduates and high school graduates.
• D) All of the above.

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Definitions:

Average Cost

The average amount it costs to produce one unit of goods or services, calculated by dividing the total cost of production by the total number of units produced.

Ending Inventory

The value of goods available for sale at the end of an accounting period, crucial for calculating cost of sales and net income.

Fire Screens

Protective screens placed in front of fireplaces to prevent sparks and embers from escaping into the room.

Retail Values

The total price at which goods or services are sold to the public, inclusive of any markup costs.