Many Argue the Poor Are Getting Poorer, at Least in a Relative

question 88

Multiple Choice

Many argue the poor are getting poorer, at least in a relative sense. Evidence that contradicts this is that

• A) household income of the lowest twenty percent of households relative to the highest twenty percent of households has fallen over the last thirty years.
• B) the official poverty level of income has increased over the years.
• C) household spending of the lowest twenty percent of households relative to the highest twenty percent of households has held constant over the last thirty years.
• D) the pretax distribution of income is more equal than the after-tax distribution of income.

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Definitions:

Output

The total amount of goods or services produced by a company, sector, or economy.

Normative Questions

Questions that address what should be, focusing on value judgments and opinions rather than empirical facts.

Value Judgments

Assessments or opinions based on individual beliefs about what is important or desirable, often influencing decisions and policies.

Positive Economic

Refers to an approach or analysis based on factual data and observable outcomes, without subjective judgments or opinions influencing the conclusions.