Empirical Observations Validate That the Gini Co-Efficient for the U

question 36

Multiple Choice

Empirical observations validate that the Gini co-efficient for the U.S.economy was between 0.35 and 0.37 until the 1990s,after which it has increased and reached 0.469.Which of the following can be inferred from this?

• A)The distribution of national income in the U.S.has become slightly more equal since the 1990s.
• B)The government spending on poverty alleviation has increased since 1990.
• C)More jobs have been created in the U.S.since 1990.
• D)The distribution of national income in the U.S.has become slightly more unequal since the 1990s.
• E)The government has replaced the existing regressive tax structure with a progressive tax structure.

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Definitions:

Construction

The process of building, assembling, or forming infrastructure, buildings, or other constructed assets.

Installment Payments

Payments made regularly over a period of time to settle a debt or purchase, often including interest charges.

Convertible Bonds

Bonds that can be converted into a predetermined number of shares of the issuing company's equity at certain times during their life, usually at the discretion of the bondholder.

Bond Redemption

The process whereby a bond issuer returns the bond's principal value to the bondholder, effectively terminating the bond at or before its maturity.