Homework Clinic
Social Science Clinic => Economics => Microeconomics => Topic started by: Davideckstein7 on Jul 21, 2019
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Recall the Application about why international trade may reduce measured inequality in the United States to answer the following question(s). While it is conventional wisdom now that inequality in the United States has increased in the last several decades, until recently no one has taken a careful look at the actual living standards of different income groups, taking into account the goods they purchase. Two economists from the University of Chicago, Christian Broda and John Romalis, investigated the living standards of low-income groups and high-income groups based on the goods these groups purchase.
According to this Application, the poor consume ________ ratio of nondurable goods to services ________.
◦ a higher; than the rich
◦ a negative; compared to the rich
◦ an equal; as the rich
◦ a lower; than the rich
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a higher; than the rich