A Group of 10 Golfing Buddies Have the Following Annual

question 73

Multiple Choice

A group of 10 golfing buddies have the following annual incomes: $32,000, $12,000, $56,000,
$120,000, $10,000, $38,000, $70,000, $16,000, $20,000, $24,000. The share of income received by the lowest quintile of this income distribution is _______ than that for the bottom quintile of the
U.S. income distribution in 2005. The share of income received by the highest quintile of this income distribution is _______ than that for the highest quintile of the U.S. income distribution in 2005.

• A) lower, lower
• B) lower, higher
• C) higher, higher
• D) higher, lower

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Definitions:

Profit Maximization

A process or strategy employed by businesses to increase their net profits to the highest possible level.

Output Increases

A situation where the production or yield of goods and services in an economy grows over a certain period.

Production Function

An equation or model that describes the relationship between inputs (like labor and capital) and the maximum output that can be produced with those inputs.

Cost Function

An equation or formula that determines the total cost of production based on the quantity of output produced, including both fixed and variable costs.