The Distribution of Wealth Is Skewed in Part Because People

question 134

Multiple Choice

The distribution of wealth is skewed in part because people with high wealth

• A) save very little.
• B) tend to marry people with similar wealth.
• C) have very little skills.
• D) do not earn much more than those with low incomes.

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Definitions:

Market Equilibrium

A condition in which the quantity of a product demanded by consumers equals the quantity supplied by producers, leading to a stable market price.

Market Equilibrium

The point where the supply of goods matches demand, resulting in a stable price.

Excess Demand

A market situation where the quantity demanded of a good exceeds the quantity supplied at a current price, leading to shortages.

Excess Supply

A situation in a market where the quantity of a good supplied is greater than the quantity demanded at the current price.