All of the Following Contribute to Income Inequality EXCEPT

question 15

Multiple Choice

All of the following contribute to income inequality EXCEPT

• A) differences in education and training.
• B) differences in job tastes.
• C) differences in talent.
• D) government transfer programs.

---

Definitions:

Substitution

The economic principle describing how consumers replace more expensive items with less costly alternatives.

Indifference Curves

Graphs showing different bundles of goods between which a consumer is indifferent, highlighting preferences.

L-shaped

Can refer to a type of economic recession and recovery that resembles the shape of the letter "L", indicating a steep decline followed by a period of stagnation.

Kinks

Points at which there is a sudden change in direction or curve, often used in economics to describe non-linearities in graphs like the demand curve.