Which of the Following Statements Is Correct

question 195

Multiple Choice

Which of the following statements is correct?

• A)Less than three percent of families are categorized as poor for eight years or more.
• B)In the United States, the grandson of a millionaire is much more likely to be rich than the grandson of an average-income person.
• C)The majority of millionaires in the United States inherited their wealth.
• D)Most workers have about the same income (adjusted for inflation) when they are young as when they are middle-aged.

---

Definitions:

Long-Run Cost Diagram

A graphical representation that shows how the costs incurred by a firm change over time with varying levels of output when all inputs are variable.

Average Cost

The expense per unit, resulting from dividing the aggregate cost of production by the total units produced.

X-Inefficiency

X-Inefficiency occurs when a firm's output is not produced with the minimum possible resources due to factors like organizational slack, lack of competitive pressure, or managerial inefficiency.

Economies Of Scale

The cost advantages obtained due to the increased level of production, which causes the average cost per unit to fall.