Which of the following statements is not correct?
a. The percentage of the population that suffers from long-term poverty is far smaller than the percentage of the population that suffers from short-term poverty because there is a high level of economic mobility in the United States.
b. Permanent income is a better measure of a family's ability to buy the necessities of life than is transitory income.
c. The economic life cycle theory explains why gifts of goods and services reduce poverty for the very young and the very old.
d. Because people can borrow and save to smooth out changes in income, their standard of living in any one year depends more on lifetime income than on a particular year's income.
c
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One result of a tax is an increase in economic efficiency
Indicate whether the statement is true or false
Refer to the graph shown.
The middle quintile (the middle fifth) of families earn:
A. 32.6 percent of the income. B. 22.1 percent of the income. C. 10.7 percent of the income. D. 15.3 percent of the income.