Even If Lifetime Incomes Were Equal, There Still Might Be

question 86

Multiple Choice

Even if lifetime incomes were equal, there still might be substantial inequality in annual income data because

• A) wage rates might differ substantially.
• B) some might have inherited their wealth.
• C) some might have retired, whereas others are prime-age earners.
• D) educational levels might differ substantially.

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Definitions:

Board of Governors

The Federal Reserve System’s governing body.

Federal Open Market Committee

A branch of the Federal Reserve that oversees open market operations, including the buying and selling of government securities, to influence the money supply and interest rates.

Open Market Operations

The buying and selling of government securities by a central bank to control the money supply and interest rates in the economy.

Federal Reserve

The central banking system of the United States, responsible for conducting national monetary policy and overseeing financial institutions.