The Distribution of Wealth

question 6

Multiple Choice

The distribution of wealth

• A)understates the degree of inequality because it does not take into account the family's stage in its life cycle.
• B)understates the degree of inequality because it does not take into account the distribution of human capital.
• C)overstates the degree of inequality because it does not take into account the family's stage in its life cycle.
• D)overstates the degree of inequality because it does not take into account the distribution of human capital.
• E)is an accurate measure of the degree of inequality.

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Definitions:

Tariffs

Taxes imposed on imported goods to increase their price and protect domestic industries.

Fair Market Value

The price that a property would sell for on the open market, between a willing buyer and a willing seller, each with reasonable knowledge of the pertinent facts.

Protectionism

A government policy aimed at restricting international trade to protect domestic industries from foreign competition by imposing tariffs or quotas on imports.

Outsourcing of Jobs

The practice of hiring external firms or individuals to perform tasks, handle operations or provide services that are either difficult to manage or are outside the company's core competencies.