The Percentage of the Population in the Two Higher Income

question 11

Multiple Choice

The percentage of the population in the two higher income classes (defined by Pew as having more than 200% of median family income) declined from more than 60% in the 1970s to 50% in 2015. Economists that see the decline in the middle class as a consequence of declining growth argue

• A)The middle class is responsible for buying a high portion of the goods and services produced.
• B)If the poor can't afford goods, fewer will be produced.
• C)The middle class is responsible for most of the investment dollars available
• D)That middle class are generated by growth and without it, there are fewer such jobs.

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Definitions:

Sales Tax

A tax on sales or receipts from sales, usually calculated as a percentage of the sale price and collected by the seller from the consumer at the point of sale.

Merchandise Sold

The total value of goods that have been sold by a company during a specific period, often reported on the income statement.

Sales Tax Department

The government department or agency responsible for collecting, administering, and enforcing sales tax regulations and payments.

Sales Tax Percentage

The rate at which sales tax is applied to the purchase price of goods and services, expressed as a percentage.