The richest 10 percent of U.S. houses hold more than two-thirds of all wealth. The problem with this statement is that
A) it does not consider an individual's current income.
B) it does not consider private and public pension plans.
C) it is based entirely on nonhuman wealth.
D) it is based entirely on human wealth.
B
You might also like to view...
According to the textbook application, the Chesapeake Bay
a. has been deteriorating for decades b. is the largest estuary in North America c. has been addressed by a recent presidential executive order d. all of the above e. none of the above
Which of the following statements is not correct?
a. Part of the deadweight loss associated with monopoly is measured by the monopolist's economic profit. b. Marginal cost is always less than average total cost in a natural monopoly. c. Discount coupons available free to the public are a type of price discrimination. d. Anti-trust laws make it harder for firms to create synergies.
Which of the following offers theories to explain why the government, like the private sector, may also "fail"?
A. social economics B. public choice theory C. rational expectations theory D. Keynesian economics
You are a top Treasury official for a developing country who has been asked for advice on how to best open the nation's stock market to foreign investment. Previously, the government did not permit foreigners to purchase domestic stock. Now, the government has a plan to create two markets: one for domestic residents and one for foreign investment. What are the potential drawbacks of this system, compared to allowing both domestic and foreign investors to trade in the same market? What are the larger implications for economic efficiency? How might the government be able to address these issues?
What will be an ideal response?