Use the Following to Answer Question(s): Income Distribution in the United

question 55

Multiple Choice

Use the following to answer question(s) : Income Distribution in the United States

-An income test devised to indicate poverty for those people whose incomes fall at the bottom of the income distribution is called a(n) :

• A) means-tested test.
• B) relative income test.
• C) absolute income test.
• D) nominal income test.

---

Definitions:

Equity Mutual Fund

A type of mutual fund that invests primarily in stocks, aiming to provide returns through dividends and capital gains.

Annual Returns

The yearly profit or loss generated by an investment, expressed as a percentage of the investment's initial value.

Aggregate Market Value

The total market capitalization of a company, calculated by multiplying the current stock price by the total number of outstanding shares.

Compound Annual Rate

The rate of return that would be required for an investment to grow from its beginning balance to its ending one with the compounding effect considered over a period of one year.