The Widening Gap Between Rich and Poor in the 1990s

question 29

Multiple Choice

The widening gap between rich and poor in the 1990s was reflected in which of the following?

• A) the increasing ratio between chief executive pay and the earnings of the average worker
• B) the slow decline of housing prices in urban areas
• C) the return of 1970s-style stagflation
• D) the increasing number of children per family in poor communities

---

Definitions:

Willingness to Pay

The maximum amount an individual is prepared to spend on a good or service, reflecting the value they attribute to it.

Basketball Sneakers

Footwear specifically designed to provide support, grip, and comfort for basketball players, often characterized by high-tops that provide ankle stability.

Consumer Surplus

The divergence between what consumers are willing and have the financial capability to pay for a good or service, and what they really pay.

Willingness to Pay

The maximum price at which a consumer will buy a good or service.