Many argue the poor are getting poorer, at least in a relative sense. Evidence that contradicts this is that
A) household income of the lowest twenty percent of households relative to the highest twenty percent of households has fallen over the last thirty years.
B) the official poverty level of income has increased over the years.
C) household spending of the lowest twenty percent of households relative to the highest twenty percent of households has held constant over the last thirty years.
D) the pretax distribution of income is more equal than the after-tax distribution of income.
Answer: C
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Refer to the above figure. For a normal good, the rightward shift of the curve could have been caused by
A) a technological improvement. B) an increase in the cost of inputs. C) an increase in income. D) a decrease in income.
Normative economics concerns
a. analysis of social and economic norms b. statements of fact c. the analysis of what is d. the study of what ought to be e. value-free judgments