Consider an Economy with a Particular Distribution of Income

question 27

Multiple Choice

Consider an economy with a particular distribution of income. Over the next 10 years, the income of all households increases by $20,000. How will the Gini coefficient change over those 10 years?

• A) The Gini coefficient will increase.
• B) The Gini coefficient will decrease.
• C) The Gini coefficient will stay the same as all households received the same increase in income.
• D) The Gini coefficient will become more negative.
• E) It is impossible to determine how the Gini coefficient will change as it will depend on the original income distribution.

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Definitions:

Lost Child

A family role where the individual becomes invisible and neglected as family attention often focuses on more demanding or problematic members.

Unwritten Rules

Implicit norms or expectations that are not formally documented but guide behavior within a social group or organization.

Family System

A concept in psychology that views the family as an emotional unit, emphasizing the interconnectedness and interdependence of family members.

Family Counselor

A mental health professional specializing in providing therapeutic services to families, aiming to resolve conflicts and improve communication.