The Experience of the HPAEs Has Brought Attention to Predictions

question 39

Multiple Choice

The experience of the HPAEs has brought attention to predictions about income inequality made by Kuznets.He predicted that at first income inequality would ________ as economies began to develop.In the HPAEs experience it ________.

• A)rise;rose
• B)decrease;decreased
• C)rise;fell
• D)fall;rose
• E)There was no pattern.

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Definitions:

Economic Profits

The excess of total revenues over total costs, including both explicit and implicit costs.

Perfectly Competitive

Describes a market structure where numerous small firms compete against each other, and products are considered perfect substitutes.

Average Rate

A mathematical mean or typical value of a set of rates, often used in reference to interest rates, pricing, or other financial statistics.

Market Demand

The total quantity of a product or service that is desired by all potential consumers in a market at various price levels.