Suppose All Persons Have the Same Innate Ability and the Same

question 17

Multiple Choice

Suppose all persons have the same innate ability and the same access to capital markets. Which of the following will decrease inequality?

• A) People vary more in their time horizon.
• B) People vary more in the value they place on leisure.
• C) People become more willing to leave the labor force when their wages fall.
• D) People become more risk-adverse

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Definitions:

Sea Slugs

A common name for some marine invertebrates with varying levels of resemblance to terrestrial slugs, most of which belong to the class Gastropoda in the phylum Mollusca.

Memory Formation

The biological process through which experiences are encoded, stored, and later retrieved in the brain, forming the basis of learning and knowledge accumulation.

Neurotransmitters

Chemical substances in the nervous system that transmit signals from one neuron to another.

Short-Term Recall

Refers to the capacity to hold a small amount of information in an active, readily available state for a short period of time.