How does the distribution of wealth differ from the distribution of income in the United States?
What will be an ideal response?
As conventionally measured, the distribution of wealth is more unequally distributed than the distribution of income. However, the wealth figures usually do not include workers' claims on pension plans or human capital. If these were included, the distribution of wealth would be less unequal than reported.
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Contractionary fiscal policy includes
A) increasing taxes and increasing government purchases. B) raising interest rates, increasing taxes, and decreasing transfer payments. C) increasing taxes and decreasing government expenditures. D) raising interest rates, decreasing taxes, and decreasing government spending.
Refer to A Negative Externality Problem. Suppose there are no transactions costs. Also suppose the externality is internalized when the damaged parties offer producers a bribe of $10 per unit to reduce their production. Coasian analysis indicates that social gain in this situation will equal
Demand for a good is given by Q = 100 - P. The private marginal cost of production is MCP = 10 + Q. There is a $10 per unit negative production externality in this situation. a. $0 b. $800 c. $1,600 d. $3,200