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What Is the Relationship Between Average Household Income and Standard

Question 18

Multiple Choice

What is the relationship between average household income and standard of living?


A) There is no relationship. Increasing average income says nothing about income distribution.
B) Rising income enables households to acquire more of the goods and services that improve their material standard of living.
C) Rising income tends to increase the crime rate and violence, thereby lowering a country's standard of living.
D) There is no relationship. Standard of living depends on productivity not household income.

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