The Gap Between Rich and Poor Widened in the 1980s

question 58

Multiple Choice

The gap between rich and poor widened in the 1980s and 1990s for all of the following reasons except

• A) intensifying global economic competition.
• B) the decline of unions.
• C) tax policies of the Carter and Clinton administrations.
• D) the growth of part-time and temporary work.
• E) the greater economic rewards for education.

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Definitions:

Variable Costs

Spendings that move in tandem with the level of output or number of sales.

Sales Dollars

The total revenue generated from the sale of goods or services before any expenses are deducted.

Break-Even Point

The production level or sales volume at which total revenues equal total expenses, resulting in no net loss or gain.

Contribution Margin

The difference between sales revenue and variable costs, which contributes towards covering fixed costs and earning profit.