The "By the Numbers" Feature Presents Two Ways to Measure

question 75

Multiple Choice

The "By the Numbers" feature presents two ways to measure income inequality. How does inequality in the United States compare with inequality in other democracies around the world?

• A) The United States ranks at about the middle of the pack in terms of inequality. While the problem does not seem to be getting worse, it is not getting better either.
• B) The United States ranks very high on measures of inequality and the problem seems to be getting worse.
• C) The United States ranks very high on measures of inequality but the problem seems to be getting better.
• D) The United States ranks very low on measures on inequality and the problem seems to be getting better.
• E) The United States ranks very low on measures on inequality but the problem seems to be getting worse.

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Definitions:

Initial Investment

The amount of money used to start a business venture, acquire an asset, or invest in a financial product.

Short 100 Shares

The selling of 100 shares that are not currently owned, with the expectation of buying them back at a lower price for a profit.

Initial Margin

The minimum amount of capital required to open a new position in the market, designed as a security for the broker against potential losses.

Actual Margin

The real profit margin achieved after accounting for all costs and expenses, reflecting the actual financial health and profitability.