Kuznets' Inverted-U Hypothesis

question 31

Multiple Choice

Kuznets' inverted-U hypothesis

• A)implies that things must get worse before they get better.
• B)suggests that inequality will worsen and then improve as a country grows.
• C)suggests that inequality will improve and then worsen as a country grows.
• D)points out six characteristics of modern economic growth.

---

Definitions:

Master Budget

A comprehensive financial planning document that includes all of the smaller, individual budgets within an organization, projecting all major financial activities.

Static Budget

A static budget is a fixed budget that does not change or adjust in response to changes in business activity levels, such as sales volume or production capacity, during the budget period.

Flexible Budget

A budget that adjusts or varies with changes in the volume of activity, allowing for better control and analysis of performance by comparing actual costs to budgeted amounts at the actual activity level.

Credit Sales

Sales transactions in which the payment is delayed as agreed by both the seller and the buyer.