Question

Multiple Choice

1. According to Thomas Piketty and Emmanuel Saez in “Income Inequality in the United States, 1913–1998,” income inequality in the United States over the past 100 years:
a. has been rising fairly steadily.
b. has been falling fairly steadily.

c. has changed little.
d. was high until roughly the 1930s, then fell sharply, then was stable through roughly 1970, and has generally been rising since.

e. was generally rising until the 1930s, then changed little until around 1990, when it started rising again.
f. was generally falling until the Great Depression, then rose sharply until World War II, then fell sharply, and has been fairly stable since.

2. The following is included in U.S. GDP:

a. the market value of land bought and sold in the United States.
b. the market value of final goods produced and sold abroad by companies headquartered in the United States.

c. the market value of services produced and sold to consumers in the United States.
d. the market value of the existing factories and machines used to produce goods in the United States.

3. The present value of a payment to be received in the future is smaller:

a. the sooner the payment will be received.
b. the later the payment will be received.
c. the higher the interest rate.

d. the lower the interest rate.

e. a and c.
f. a and d.
g. b and c.

h. b and d.

Answer 1