When we compare shares of income earned by U.S. households, which of the following statements about the distribution of income is true?
A) Shares of income decrease as we move from the lowest quintile to the highest quintile.
B) Shares of income increase as we move from the lowest quintile to the highest quintile.
C) Shares of income remain fairly constant as we move from the lowest quintile to the highest quintile.
D) Shares of income decrease as we move from the lowest quintile to middle quintile, and then decrease from the middle quintile to the highest quintile.
B
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Which of the following shifts the short-run but not the long-run aggregate-supply curve left?
a. an increase in the expected price level b. a decrease in the expected price level c. a decrease in how much people want to consume d. an appreciation of the dollar
Consumers in Beachland consume only two goods, sodas and DVDs. If they spend $10 on sodas and $90 on DVDs a month, how many sodas and DVDs are in their CPI market basket if the price of a soda is $1 and the price of a DVD is $9?
A) 9 sodas and 1 DVD B) 1 soda and 9 DVDs C) 10 sodas and 9 DVDs D) 10 sodas and 10 DVDs E) It is impossible to determine the market basket without information on the quantity of at least one of the two goods consumed.