What is the difference between wealth and income?
What will be an ideal response?
Wealth is a stock of assets, that is, wealth is what is owned at a point in time. Income is a flow of earnings over time. Thus a person's wealth can be measured on, say December 31, 2013 whereas a person's income is measured over a time period, say during 2013.
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Public saving in the economy can be increased by
A) raising taxes. B) raising government spending. C) raising transfer payments. D) lowering taxes.
Which of the following is true for a firm with a downward-sloping demand curve for its product?
A) Price equals average revenue but is greater than marginal revenue. B) Price equals average revenue but is less than marginal revenue. C) Price, average revenue, and marginal revenue are all different. D) Price, average revenue, and marginal revenue are all equal.
The second phase of the Industrial Revolution took place in ____ (which country) during the early years of the ____ century.
Fill in the blank(s) with the appropriate word(s).
Which of the following correctly describes the Lorenz curve??
A. ?The Lorenz curve shows that the increasing income inequality in the U.S. society is actually good for the economy. B. The Lorenz curve shows the growth rate in real median family income over time. C. ?The Lorenz curve shows the cumulative distribution of family income, ranked from the poorest to the richest families, and compares that curve with the straight line indicating perfectly equal income distribution. D. ?The Lorenz curve shows the cumulative distribution of family income, ranked from the richest to the poorest families, and compares that curve with the ideal of having all income go to the richest 5 percent of society.