Andy observes that the income distribution between the richest and poorest people in the population has remained fixed for decades. He concludes that the rich stay rich and the poor stay poor. Is this a valid conclusion, or has Andy missed something?
What Andy has missed is the possibility that individuals are mobile between the various classifications of rich and poor. It could be that people move in and out of these classifications all the time. While the relative numbers may not change, this does not signify the degree of mobility within these groupings.
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Where large amounts of capital are used, the dominant form of business organization is the
A) corporation. B) partnership. C) proprietorship. D) partnership in manufacturing and the corporation in finance.
How does the Open Market Trading Desk conduct its operations?
A) directly with private securities dealers on the floor of the New York Stock Exchange B) directly with private securities dealers on the floor of the Federal Reserve Bank of New York C) over-the-counter electronically with private securities dealers D) by sending its buy and sell orders to the U.S. Treasury for execution