Adjusting the Conventional Measure of Income Inequality for the Increase

question 29

Multiple Choice

Adjusting the conventional measure of income inequality for the increase in income tax returns resulted in:

• A)a 1.4% decrease in the top 1 percent's systemic income share during 1968 to 2007.
• B)a 2% increase in the bottom 99 percent's systemic income share during 1968 to 2007.
• C)a 1.4% increase in the top 1 percent's systemic income share during 1968 to 2007.
• D)a 2% decrease in the bottom 99 percent's systemic income share during 1968 to 2007.

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Definitions:

Sunk Cost

A cost that has already been incurred and cannot be recovered.

Nonrefundable

Describing a payment or deposit that cannot be returned or refunded back to the payer under most circumstances.

Nontransferable

An attribute of an item or asset that cannot be legally transferred or assigned from one individual or entity to another.

Fixed Cost

Expenses that do not change with changes in the volume of production, such as rent, salaries, and insurance.