One Cause of Income Inequality in the United States Is

question 85

Multiple Choice

One cause of income inequality in the United States is

• A) the free public school system.
• B) differences in preferences for market work relative to nonmarket activities as well as differences in preferences for types of work.
• C) antidiscrimination laws.
• D) a system of taxes and government transfers that redistributes income away from the lowest earners.

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Definitions:

Promissory Note

A financial document in which one entity guarantees to pay a certain amount of money to another, either when asked or at an agreed-upon date in the future.

Discount Rate

The interest rate used in discounted cash flow analysis to determine the present value of future cash flows.

Canadian Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, calculated by Statistics Canada.

Annual Rate of Inflation

The percentage increase in the cost of goods and services over a one-year period.