If Income Were Equally Distributed Among Households

question 343

Multiple Choice

If income were equally distributed among households,

• A)each household's relative share of income would increase.
• B)each household's relative share of income would decrease.
• C)the top fifth of households would have 50 percent of the income.
• D)50 percent of the households would receive exactly 50 percent of the income.

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Definitions:

Profitable

A financial status indicating that revenues exceed the costs and expenses associated with operating a business.

Profit-Maximizing Level

The output level at which a firm achieves the highest possible profit, where marginal cost equals marginal revenue.

Market Price

The current price at which an asset or service can be bought or sold.