Which is distributed more unequally, income or wealth? Why? Which is the better measure?
What will be an ideal response?
The distribution of wealth is more unequally distributed than income. Wealth is distributed more unequally than income because wealth data do not include the value of human capital, while the income data measure income from all wealth, including human capital. That is why income is a better measure for economic inequality than wealth.
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Holding other factors constant, if a tax cut moves the government budget from a surplus to a deficit, then the real interest rate will ________ and the equilibrium quantity of national saving and investment will ________.
A. decrease; increase B. decrease; decrease C. increase; increase D. increase; decrease
Exemptions are more desirable than deductions for a person in the 36% tax bracket.
A. True B. False C. Uncertain
The labour force participation rate is
A) the percentage of the working-age population who are employed. B) the percentage of the labour force who are employed. C) the percentage of the labour force who are unemployed or employed. D) the percentage of the working-age population who are unemployed or employed. E) none of the above.
Economists argue that the union wage advantage
A) has been estimated to be 100% in the private sector. B) in the private sector is a 4% increase in wages for union workers over nonunion workers. C) reached its height in 2000 in the private sector. D) has been close to zero since World War II in the private sector.