__________ Provide(s) an Obvious and Plausible Explanation as to Why

question 44

Multiple Choice

__________ provide(s) an obvious and plausible explanation as to why income and wealth in the United States have become so concentrated at the top.

• A) Accounting loopholes
• B) The tax system
• C) Capital gains
• D) Entrepreneurial risk taking

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Definitions:

Income Change

A variation in the amount of earnings received by a person, household, or economic entity over a period.

Inferior Good

A good for which an increase in income reduces the quantity demanded

Good A

A placeholder term typically used in economic models to represent a generic item or service in the market.

Income Falls

A situation where an individual's or group's earnings decrease over a period of time.