Inequality in the Distribution of Income and Wealth Is Increased

question 30

Multiple Choice

Inequality in the distribution of income and wealth is increased by

• A) the point that the children of the poorest find it difficult to get into college.
• B) saving to redistribute an uneven income over the life cycle.
• C) marrying outside one's own socioeconomic class.
• D) donating money to charities.
• E) the U.S. income tax.

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Definitions:

Impaired

Refers to a reduction in the recoverable value of a fixed asset or goodwill below its carrying amount on the balance sheet.

Asset Retirement Obligations

Legal obligations associated with the retirement of a tangible long-lived asset that a company must settle.

Expected Present Value

A financial metric that estimates the present value of future cash flows, adjusted for risk, and the time value of money.

Outflows

Cash or other resources going out of an entity, typically associated with expenses or investments.