When the Levels of Income Inequality in State Socialist and Industrial

question 40

Multiple Choice

When the levels of income inequality in state socialist and industrial capitalist societies are compared, it appears that:

• A) state socialist and industrial capitalist societies actually have similar levels of inequality
• B) state socialist societies actually have higher levels of inequality than industrial capitalist societies
• C) state socialist societies have significantly lower levels of inequality than industrial capitalist societies

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Definitions:

Contribution Margin

The amount of revenue remaining after deducting variable costs, which contributes towards covering fixed costs and then generating profit.

Operating Income

The income generated from the primary activities of a business, determined by deducting operating costs from the gross profit.

Selling Price

The amount a buyer pays to purchase a product or service from a seller.

Variable Cost

A cost that varies with the level of output or production, such as materials and labor directly involved in manufacturing.