If the Gini Coefficient Has Risen Then

question 1

Multiple Choice

If the Gini coefficient has risen then

• A) the mean and median levels of income have risen at the same rate.
• B) the mean level of income has risen faster than the median.
• C) the median level of income has risen faster than the mean.
• D) the mean and median levels of income have fallen at the same rate.

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Definitions:

Bounded Rationality

The concept that decision-making is limited by the information, cognitive limitations, and time constraints.

Opportunity Cost

The cost of foregone alternatives when one option is chosen over another, essentially the benefits you could have received by taking an alternative action.

Marginal Benefit

The increased benefit derived from the utilization of one more unit of a good or service.

Marginal Cost

The cost added by producing one additional unit of a product, focusing on changes in overall cost with slight increases in production.