Maximum Income Inequality Occurs When

question 92

Multiple Choice

Maximum income inequality occurs when:

• A) no one household receives all the income in a society.
• B) one household receives all the income in a society.
• C) all households receive equal income in a society.
• D) all households receive unequal income in a society.

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Definitions:

Minimum Imposed Price

A price floor set by the government or other regulatory body, above the equilibrium price, to prevent prices from falling too low.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay, representing a measure of consumer satisfaction.

Producer Surplus

The difference between what producers are willing to accept for a good and the actual amount they receive.

Minimum Imposed Price

A price floor set by the government or an agency, below which the price of a product cannot legally fall.