Imagine Two Countries, Lebos and Egap, That Have Identical Average

question 120

Multiple Choice

Imagine two countries, Lebos and Egap, that have identical average annual incomes. In Lebos, the poorest families one year almost always end up as the richest families the next year and become middle-income families the year after that. In Egap, however, the poor remain poor and rich remain rich. Which of the following is true about the two countries?

• A) The measured distribution of annual income in any given year is more equal in Lebos than in Egap.
• B) The measured distribution of annual income in any given year is more equal in Egap than in Lebos.
• C) The measured distribution of annual income in any given year will be the same in Lebos and Egap.
• D) The distribution of lifetime income is more equal in Egap than in Lebos.

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Definitions:

Skilled Industrial Jobs

Positions that require specific technical skills and training, typically in a manufacturing or industrial setting.

Great Uprising

Refers to a significant and widespread strike or series of labor protests, such as the great railroad strike of 1877 in the United States, exemplifying workers' struggles for fair labor practices and conditions.

Capital Owners

Individuals or entities that own assets used in the production of goods and services, such as machinery, buildings, or money.

Cooperatives

Organizations or businesses owned and operated by their members, who share the benefits or profits.