The Table Below Shows the Distribution of Income in the U.S

question 73

Multiple Choice

The table below shows the distribution of income in the U.S. in the year 1978.Table 19.1

-Refer to Table 19.1. What percentage of households earn 31.5% of the income?

• A)Bottom 20%
• B)Top 20%
• C)Bottom 60%
• D)Top 40%
• E)Top 10%

Identify examples of government policies aimed at addressing externalities.

Recognize the social costs associated with pollution as part of negative externalities.

Understand the concept of technology spillover and its classification as an externality.

Distinguish between command-and-control and market-based policies for correcting externalities.

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Definitions:

Subprime Mortgage

A type of home loan provided to individuals with poor credit histories, which carries a higher risk of default and higher interest rates.

2008 Financial Crisis

A global financial downturn triggered by the collapse of the housing bubble in the United States, leading to widespread economic contraction, failures of major banks and financial institutions, and significant government interventions.

Housing Bubble

A situation in real estate markets characterized by high demand, low supply, and inflated prices that eventually lead to a sharp decline.

Hurricane Katrina

A devastating Category 5 hurricane that struck the Gulf Coast of the United States in August 2005, especially affecting New Orleans and surrounding areas.