How has the distribution of income changed in the past few decades?
What will be an ideal response?
From 1970 economic inequality in the United States has increased. The share of income received by the richest quintile (20 percent) of the population has increased and this is the major change in the distribution of income.
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In the labor market, as wages rise, households
A) decrease the quantity of labor supplied. B) increase the quantity of labor supplied. C) decrease the quantity of labor demanded. D) increase the quantity of labor demanded. E) increase the supply of labor.
How does the long run differ from the short run in perfect competition?
a. In the long run, some firms will charge higher prices than others. b. In the short run, a firm seeks to maximize profit; in the long run it seeks to minimize cost. c. In the short run, a firm seeks to maximize profit; in the long run it seeks to maximize revenue. d. The long run is long enough to allow for the entry of new firms into the industry.