Even If Lifetime Incomes Were Equal, There Still Might Be

question 86

Multiple Choice

Even if lifetime incomes were equal, there still might be substantial inequality in annual income data because

• A) wage rates might differ substantially.
• B) some might have inherited their wealth.
• C) some might have retired, whereas others are prime-age earners.
• D) educational levels might differ substantially.

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Definitions:

Customers Pay

refers to the transactions where customers remit payment for goods or services received from a business.

Prepaid Freight

Costs paid by a shipper in advance for shipment of goods, indicating that the sender bears the freight charges.

Cash Discount

A reduction in the invoice price offered to buyers as an incentive for early payment.

Wholesalers

Companies that sell merchandise to other businesses rather than to the public.