In Contrast to the Liberal View in Which Economic Inequalities

question 58

Multiple Choice

In contrast to the liberal view in which economic inequalities between wealthy and poor states will lessen over time, economic structuralists argue that

• A) the gap in wealth will increase until there is a rise in trade and then the gap will decrease.
• B) this inequality is a result of the balance of power.
• C) this economic disparity will widen over time.
• D) the gap in wealth is only temporary.

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Definitions:

Corporate Profits

The total income earned by companies after all expenses and taxes have been deducted, indicative of business health and economic conditions.

Depreciation

Depreciation refers to the reduction in the value of an asset over time, often due to wear and tear.

Hurricane Katrina

A devastating Category 5 hurricane that struck the Gulf Coast of the United States in August 2005, causing widespread destruction and significant loss of life, particularly in New Orleans, Louisiana.

Real GDP

Gross Domestic Product adjusted for inflation, measuring the value of goods and services produced by a country in a given year, expressed in constant prices.