Measured Wealth Distributions That Do Not Consider the Distribution of Human

question 10

Multiple Choice

Measured wealth distributions that do not consider the distribution of human capital

• A)overstate the equality of the income distribution.
• B)understate the inequality of the income distribution.
• C)are correct since human capital is difficult to accurately measure.
• D)overstate the inequality of the wealth distribution.
• E)are correct because the distribution of human capital is about the same as the distribution of non-human wealth.

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Definitions:

Step-fixed Costs

Expenses that remain constant over a range of production but can change when production exceeds certain levels.

Inflationary Price Increase

A rise in prices across the board that is often attributed to an increase in the money supply or demand outpacing supply.

Absorption Costing

An accounting method that includes all manufacturing costs (direct materials, direct labor, and both variable and fixed overhead) in the cost of a product.

Variable Costs

Additional costs incurred when unit production increases. Variable costs per unit usually are assumed not to vary with volume.