If a Rise in Incomes for Both Low-Income and High-Income

question 66

Multiple Choice

If a rise in incomes for both low-income and high-income workers is higher for the high- income workers,

• A) then poverty will fall and inequality will rise.
• B) then poverty will rise and inequality will fall.
• C) then poverty will fall and inequality will fall.
• D) then poverty will rise and inequality will rise.

---

Definitions:

Uncontrollable Costs

Uncontrollable costs are expenses that cannot be directly managed or influenced by actions of the business or its managers, often due to external factors.

Investment Center

A division or unit within an organization that is responsible for its own revenue, expenses, and investments, and is evaluated on its profitability.

Profit Center

A profit center is a segment or area of a business that is responsible for generating its own revenues and hence directly contributes to the company's overall profit.

Indirect Expenses

Costs that are not directly attributable to a specific product or service but are necessary for the operation of a business, such as utilities or rent.