What is the main reason that the distribution of measured wealth is more unequal than the distribution of income?
What will be an ideal response?
The distribution of income statistics include the returns from human capital, but the distribution of measured wealth statistics do not include the stock of human capital.
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A worldwide hops (a flower used in brewing) shortage made stouts, ales and other specialty microbrews more pricy in 2008. Gayle Goshie, a hops farmer, blames overproduction for hops' previously cheap place on the agricultural market
The glut pushed many hops farmers out business, which gradually helped hops prices recover. Suppose farming hops is a perfectly competitive market. How did farmers going out of business help hops prices recover? A) Fewer farmers cause the market supply curve to shift leftward, causing price to rise. B) Fewer farmers cause an increase in market demand, causing price to rise. C) Fewer farmers cause an increase in the surviving firms' costs, causing higher prices. D) Fewer farmers cause the individual firms' supply curves to decrease, causing higher prices.
Refer to Figure 15-13. In the figure above, if the economy in Year 1 is at point A and is expected in Year 2 to be at point B, then the appropriate monetary policy by the Federal Reserve would be to
A) lower income taxes. B) raise interest rates. C) raise income taxes. D) lower interest rates.