Recall the Application About the Relationship Between Economic Growth and Income

question 113

Multiple Choice

Recall the Application about the relationship between economic growth and income inequality to answer
the following question(s) . In the United States, inequality-as measured by the income share of the top 10
percent of families-increased from 40 percent at the beginning of the 1920s to 45 percent through the end
of the Great Depression. The share fell to 32 percent by 1944 and did not begin to increase again until the
early 1970s.
-According to this Application, compared to pre-war levels of inequality, wage and price controls during World War II decreased differentials in wages and salaries, and thereby _______ inequality.

• A)increased
• B)eliminated
• C)reduced
• D)did not change

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Definitions:

Liability

A legal responsibility or obligation, often involving financial compensation for damage or harm caused.

Prudently

Acting with or showing care and thought for the future, typically in the management of resources or decision-making processes.

Repair Costs

Expenses incurred to fix or restore damaged or worn-out goods or property to their original condition.

Legal Action

A process by which a court of law is engaged to pursue a legal remedy, often involving litigation.