One of the Factors That Causes Differences in Inequality Across

question 19

Multiple Choice

One of the factors that causes differences in inequality across countries is:

• A) the extent to which governments redistribute income through the public budget.
• B) the amount of jobs that are available in the country.
• C) the labor force participation rate within countries.
• D) how many income earners there are relative to total population.

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Definitions:

Price Discrimination

A pricing strategy where a seller charges different prices for the same product or service to different consumers, based on their willingness to pay.

Durable Good

A consumer good with an expected life (use) of three or more years.

Elastic Demand

A situation in which the demand for a product or service changes significantly in response to changes in price.

Concession Items

Products sold typically at entertainment venues, such as cinemas or sports arenas, often comprising snacks, drinks, and other quick-service foods.