One Study of the Distribution of Wealth Indicates That the Bottom

question 40

Multiple Choice

One study of the distribution of wealth indicates that the bottom 40 percent of households hold 1 percent or less of total marketable wealth in the United States. Which of the following people is most likely to be in the bottom 40 percent?

• A) Ann is 29 years old, earns $120,000 a year, has no financial assets, but still has student loans of $4,000.
• B) Betty is 29 years old, earns $40,000 a year, has $80,000 in a savings account, and has credit card debt of $4,000.
• C) Carol is 69 years old, is disabled, and is living on Social Security and dividends from her $500,000 of mutual funds. She has no debt.
• D) Debra is 45 years old, and the only money she gets is $40,000 of rental payments from an apartment building she owns that is worth $250,000. She owes the bank $50,000.

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Definitions:

Personality Disorders

A group of mental disorders characterized by enduring maladaptive patterns of behavior, cognition, and inner experience, exhibited across many contexts and deviating markedly from those accepted by the individual's culture.

Binge-Eating Disorder

A serious eating disorder characterized by recurrent episodes of eating large quantities of food, often quickly and to the point of discomfort, accompanied by feelings of loss of control and shame.

Purging

The act of removing or getting rid of something unwanted; in psychology, it may refer to behaviors intended to expel unwanted emotions or food.

Anorexia Nervosa

A psychological and potentially life-threatening eating disorder characterized by an extreme fear of gaining weight and a distorted body image, leading individuals to eat very little and see themselves as overweight even if they are dangerously underweight.