Suppose That Earnings Instability (Such That Income Can Go Up

question 10

Multiple Choice

Suppose that earnings instability (such that income can go up or down) increases for the lower 20 percent of the workforce.The increase in inequality as measured by the 90:10 ratio will ________ the increase as measured by the 80:20 ratio.

• A) be smaller than
• B) be about the same as
• C) be greater than
• D) None of the above: inequality will decrease.

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Definitions:

Automobile Association

An organization dedicated to serving the interests of vehicle owners and drivers by offering services like roadside assistance, travel planning, and insurance.

Guarantor

An individual or entity that promises to pay a borrower's debt in the event the borrower defaults on a loan obligation.

Indemnity

A contractual obligation of one party to compensate for the loss or damage suffered by another.

Writing Requirements

Legal stipulations that certain contracts or agreements must be written and signed to be legally binding.