Suppose All People Have the Same Age-Earnings Profile and the Percent

question 204

Multiple Choice

Suppose all people have the same age-earnings profile and the percent of the population in each age category is the same. The distribution of income at any point in time will be

• A) equal because all have the same profile.
• B) equal because incomes and wealth levels must then be the same.
• C) unequal because other sources of income will differ.
• D) unequal because incomes differ by age.

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Definitions:

Mailbox Rule

The mailbox rule is a legal principle that an offer is considered accepted once the acceptance is properly placed in the mail, even if it is lost or delayed.

Effective Upon Dispatch

Effective upon dispatch refers to the principle that certain actions, such as the sending of a notification or document, are considered effective from the moment they are sent, not when they are received.

Reasonable Expectation

refers to what an average person might foresee or predict as a likely outcome under certain circumstances, often used as a standard in legal and ethical considerations.

Revocation

The official cancellation or withdrawal of an offer, license, right, or privilege.