EBK PRINCIPLES OF MICROECONOMICS (SECON
EBK PRINCIPLES OF MICROECONOMICS (SECON
2nd Edition
ISBN: 9780393616149
Author: Mateer
Publisher: W.W.NORTON+CO. (CC)
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Chapter 15, Problem 7SP
To determine

Determine the average output.

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Question 9 In Country X there are only two income levels: $10,000 and $40,000. Twenty million individuals earn the low income and twenty million earn the high income. The Gini coefficient associated with this income distribution is given by 0.70 0.30 0.35 0.65
Why is income inequality in America so pronounced? Consider education Outsourcing, immigration, and the gains of the super-rich are the most common reasons for the income inequality in America. Tyler Cowen disagrees: The problem is largely the lack of education. To date, outsourcing is not yet common enough to have much effect. Immigration doesn't account for much of the change in the wages paid to unskilled workers since 1950. Advances in technology raises the incomes of highly skilled workers. Inequality will be reduced if more people undertake education. Source: The New York Times, May 17, 2007 Immigrants to the United States include unskilled workers from Mexico and skilled workers from countries such as India and China. How would each of these types of immigrants influence the personal distribution of income? Unskilled immigrant workers and skilled immigrant workers O A. increase the percentage of total income earned by the poorest 20 percent; decrease the percentage of total…
Which one of the following is the most likely to be associated with an increase in the incidence of poverty? A) The Gini coefficient falls substantially. B) The number of single persons with children and of single pensioners has increased substantially. C) The real income of those in the top 20% of income earners falls by 10%. D) The number of people earning below the level of income support has decreased.
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