Subject - Economics:

Microeconomics

MCQ - 131-4141

Question:

You are told that the Gini coefficient of income inequality has risen from .35 to .85. Which of the following is a likely cause of this change?

Market power in the factor and output markets has increased.
Labor market discrimination has been eliminated.
The distribution of wealth and property has become more equitable.
Labor market discrimination has been eliminated.
The tax system has become even more progressive.

Correct Answer: A

Explanation:

The Gini coefficient measures income inequality. The closer it gets to one, the more unequal the income distribution. One explanation for inequality is more market power in product and input markets. This redistributes CS to monopoly producers and/or employers.

Previous Question

Next Question

Back to Section

Record Performance

269 MCQ for effective preparation of the test of Microeconomics of Economics section.

Read the MCQ statement: You are told that the Gini coefficient of income inequality has risen from .35 to .85. Which of the following is a likely cause of this change? , keenly and apply the method you have learn through the video lessons for Microeconomics to give the answer. Record your answer and check its correct answer and video explanation for MCQ No. 131-4141.

How to Answer

Solve the question for MCQ No. and decide which option (A through D/E) is the best choice to answer the MCQ, then click/tap the blue button to view the correct answer and it explanation.

Share This Page

Full Films

TV Serials

Short Films

Upcoming Films