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Two Persons with Equal Average Propensities to Consume Will Not

question 94

True/False

Two persons with equal average propensities to consume will not necessarily have equal standards of living because of differences in income.


Definitions:

Norms

Shared expectations or rules within a culture or society that guide and constrain behavior, establishing standards of conduct.

Stratification

The hierarchical arrangement of individuals or groups in a society based on wealth, power, status, or other criteria that leads to unequal access to resources and opportunities.

United States

A federal republic consisting of 50 states, a federal district, five major self-governing territories, and various possessions, known for being a leading world economic and military power.

Upper Class

The segment of society that possesses the highest level of wealth, social status, and influence.

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