Author Question: How has income inequality changed in recent years? What factors account for the changes? What ... (Read 199 times)

Chloeellawright

  • Hero Member
  • *****
  • Posts: 588
How has income inequality changed in recent years? What factors account for the changes?
 
  What will be an ideal response?

Question 2

As Jake consumes more sodas over the course of a day, it is likely that his marginal rate of substitution of sodas for other goods will rise. Is the previous statement correct or incorrect?
 
  What will be an ideal response?



aruss1303

  • Sr. Member
  • ****
  • Posts: 314
Answer to Question 1

Over the last couple of decades, income inequality has increased. In recent years, higher income groups have gained relatively more than the lower income groups, perhaps because of rapid technological progress. These technological advances have benefited the better educated more than the less educated.

Answer to Question 2

The statement is incorrect. The principle of diminishing marginal rate of substitution means that as Jake consumes more sodas, he is willing to give up fewer other goods in order to get an additional soda.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

In most climates, 8 to 10 glasses of water per day is recommended for adults. The best indicator for adequate fluid intake is frequent, clear urination.

Did you know?

More than one-third of adult Americans are obese. Diseases that kill the largest number of people annually, such as heart disease, cancer, diabetes, stroke, and hypertension, can be attributed to diet.

Did you know?

Pink eye is a term that refers to conjunctivitis, which is inflammation of the thin, clear membrane (conjunctiva) over the white part of the eye (sclera). It may be triggered by a virus, bacteria, or foreign body in the eye. Antibiotic eye drops alleviate bacterial conjunctivitis, and antihistamine allergy pills or eye drops help control allergic conjunctivitis symptoms.

Did you know?

Children of people with alcoholism are more inclined to drink alcohol or use hard drugs. In fact, they are 400 times more likely to use hard drugs than those who do not have a family history of alcohol addiction.

Did you know?

Barbituric acid, the base material of barbiturates, was first synthesized in 1863 by Adolph von Bayer. His company later went on to synthesize aspirin for the first time, and Bayer aspirin is still a popular brand today.

For a complete list of videos, visit our video library