According to the Pew Charitable Trust Methodology for Identifying the Middle

question 24

Multiple Choice

According to the Pew Charitable Trust methodology for identifying the middle class, if people near the boundary between the lowest and the lower middle income class gain more income, the middle class will ___

• A)shrink, but that is unambiguously a good thing.
• B)shrink, and that is unambiguously a bad thing.
• C)increase, and that is unambiguously a good thing.
• D)increase, and that is unambiguously a bad thing.

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Definitions:

Total Revenue

The total income received by a firm from selling its goods or services.

Marginal Revenue

The increase in income achieved by selling an additional unit of a product or service.

Nondiscriminating Monopolist

A monopolist that charges all consumers the same price for its product or service instead of setting different prices for different consumers.

Marginal Revenue

The profit made by selling one more unit of a product or service.