If the Level of Incomes Rises for High-Income Workers but Doesn't

question 56

Multiple Choice

If the level of incomes rises for high-income workers but doesn't change for low-income workers,

• A) then poverty will not change and inequality will fall.
• B) then poverty will not change and inequality will rise.
• C) then poverty will rise and inequality will fall.
• D) then poverty will fall and inequality will rise.

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Definitions:

Market Outcomes

The results of the interactions between buyers and sellers in a market, including prices, quantities sold, and changes over time.

Ration Goods

Products that are distributed in limited quantities, often through a system of rationing, due to shortages or wartime conditions.

Efficient

In economics, describing an allocation of resources in which it is impossible to make any one individual better off without making at least one individual worse off.

Price Controls

Government interventions to regulate the maximum or minimum prices of certain commodities or services, aiming to prevent market imbalances.