Inequality and the Gap Between Rich and Poor Have Been

question 24

Multiple Choice

Inequality and the gap between rich and poor have been steadily growing in the United States.The richest 20 percent has __________ of the total income,while the poorest 20 percent has __________ of the total income.

• A) 51 percent; 3.2 percent
• B) 3.2 percent; 51 percent
• C) 25 percent; 25 percent
• D) 33 percent; 34.3 percent

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Definitions:

Long-Run Adjustments

Refers to changes that firms in an industry make in response to economic opportunities or constraints, involving adjustments in production capacity or resource utilization over time.

Marginal Revenue

The extra revenue obtained by selling an additional unit of a product or service.

Upsloping Line

A graphical representation indicating positive correlation between two variables; as one variable increases, so does the other.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded by consumers, usually downward sloping.