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Many believe that people should be incentivized to produce more by being paid more for that additional production. This encourages people to operate more efficiently, and to produce more per capita. This results in a thriving economy for all, even those who are not highly productive, so even the poor are not as poor as they might be under different economic systems. For instance, even the poorest of the poor in America would be counted as among the richest in the old USSR.
Wiki User
∙ 13y ago
Wiki User
∙ 13y agoThere are several reasons. Some jobs are harder than others. Some jobs require more education and training than others. Some jobs pay well just because there aren't a lot of people willing to do them such as plumbers (who also require a lot of training) or jobs that require you to be away from your family for long periods. Also some jobs are more dangerous than others and therefore they pay better. And, last but not least, some people are willing to work longer and harder to prepare themselves for a job and will work harder and longer once they get there.
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If the annual income of residents in a country is 42000 thousand dollars with a standard deviation of 10000 dollars. Between what two values do 95 percent of the incomes of country residents lie?
Following on from what Anand Mehta said, if this was given as a class problem at a basic level, and the assumption was made that the incomes were normally distributed, 95% is equivalent to 1.96 SD. 1.96 * 10,000 = $19,600 So the range is given by $42,000 - $19,600 = $22400 and $4200 +$19600 = $61,600 ie $22,400-$61,600. If you were rounding, 95% is often considered as 2SD so then the range would be $22,000-$62,000.
What is an economic definition of normal good?
Normal goods are any goods for which demand increases when incomes go up, and for which demand decreases when incomes go down. Normal goods tend to be luxury goods. If incomes go up, more people will be yachts. If incomes go down, fewer people will be yachts.
In a market economy the money incomes of individuals depend primarily upon?
In a market economy, the money incomes of individuals depend primarily upon
What is slave economy?
An economy that is based on the incomes derived from slave labor.
Did incomes changed enough to offset the inflation since 2000?
yes
How is water distributed on earth's landmasses and is it distributed equally?
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Can child support be waived if joint custody is awarded?
Yes, with equally shared custody and if the parties have similar incomes.Yes, with equally shared custody and if the parties have similar incomes.Yes, with equally shared custody and if the parties have similar incomes.Yes, with equally shared custody and if the parties have similar incomes.
What is reached when molecules are equally distributed?
an equilibrium
When all particles are distributed equally what are they are in?
equilibrium
When all particles are distributed equally they are in what?
equilibrium
What is to become equally distributed in a liquid?
A solution.
Why isn't there enough water for everyone?
there is provided it is equally distributed
Are oil distributed equally among the countries of southwest Asia?
no
Which phase chromosomes are distributed equally to daughter cells?
A cell's replicated chromosomes are distributed to its daughter cells so that the two new cells have a complete set of chromosomes/DNA, so that they can carry out their cellular functions.
Are oil reserves distributed equally among the countries of sothwest Asia?
no!
Are oil reserves distributed equally among countries of southwest Asia?
no
Are oil reserves distributed equally among the countries of Southwest Asia?
no
