Reference: 1918 $\quad$ $\quad$ $\quad$ $\quad$ $\quad$

question 99

Multiple Choice

Reference: 1918 $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\text { Income Distribution in the United States }$$$\begin{array} { | l | c | c | } \hline \text { Quintile } & \begin{array} { c } \text { 1968 Income } \\\text { Share }\end{array} & \text { 1997 Income Share } \\\hline \text { Lowest 20\% } & 4.20 \% & 3.60 \% \\\hline \text { Second 20\% } & 11.1 & 8.9 \\\hline \text { Third 20\% } & 17.5 & 15 \\\hline \text { Fourth 20\% } & 24.5 & 23.2 \\\hline \text { Highest 20\% } & 42.8 & 49.4 \\\hline \text { Top 5\% } & 16.6 & 21.7\\\hline\end{array}$$
-(Exhibit: Income Distribution in the United States) In 1997, the lowest ________ percent of the families received _______ of the income.

• A)8.9; 20
• B)20; 20
• C)40; 12.5
• D)40; 8.9

Recognize the trade-offs faced by firms in production decisions.

Distinguish between normative and positive economic analysis.

Comprehend the development and purpose of economic theories.

Identify the trade-offs faced by workers in the labor market.

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Definitions:

Null Hypotheses

A statement used in statistics that proposes there is no significant difference or relationship between specified populations, or no effect of a particular treatment.

Sample

A subset of a population selected for observation and analysis in order to make inferences about the entire population.

Well-written Hypothesis

A clearly formulated statement that makes a conjecture about the outcome of an experiment or research, specifying the expected relationship between variables.

Characteristics

Distinctive or identifying features or qualities of a person, object, or phenomenon.