The Disparity in Economic Status and Security Between Upper and Lower

question 34

Multiple Choice

The disparity in economic status and security between upper and lower classes is called

• A) capitalism.
• B) class identity.
• C) inequality.
• D) the Gini index.

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Definitions:

Preferential Tax Rates

Lower tax rates applied to specific types of income, such as capital gains or qualified dividends, which are taxed at a different rate than ordinary income.

Capital Gains

The profit from the sale of property or an investment when the selling price exceeds the original purchase price.

Capital Losses

The loss incurred when a capital asset (like stocks or real estate) is sold for less than its purchase price.

Capital Gain Distributions

The payments made to mutual fund shareholders from the fund's sale of stocks or assets, subject to capital gains taxes.