Which of These Statements About Economic Inequality Is True

question 46

Multiple Choice

Which of these statements about economic inequality is true?

• A) The gap between the income of Whites and the income of Blacks and Hispanics has persisted over time.
• B) The median income of Blacks and Hispanics has remained very flat since the 1950s.
• C) Although still unequal, per capita income for Whites, Blacks, and Hispanics has been growing at the same rate since 1967.
• D) There are few data on the relative incomes of Whites and members of minority groups.

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Definitions:

Financial Leverage

The use of borrowed capital or debt to increase the potential return of an investment, amplifying both potential gains and losses.

Operating Leverage

A measure of how sensitive a company’s operating income is to a change in its sales volume, emphasizing the cost structure between fixed and variable costs.

EBIT

A gauge of company profits, Earnings Before Interest and Taxes, leaves out the charges for interest and taxes to show raw earnings.

Sales

The transactions involved in selling goods or services in the normal course of business, generating revenue for the company.