Does inherited wealth make the distribution of income less equal or more equal?
What will be an ideal response?
An inheritance from older to a younger generations can only increase wealth and can never decreases wealth within a family, which helps make the distribution of wealth more unequal over time, all else equal. However if a generation is "lucky" and earns a high income and then passes some of it along as an inheritance to more typical less lucky lower-income generations, then inherited wealth makes the distribution of income more equal.
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Thomas Schelling's most notable work dealt with ________, which lead to his advising role for the film Dr. Strangelove
A) neighborhood segregation B) nuclear annihilation C) medical malpractice D) psychotherapy
According to the table shown, the firm's marginal costs:
This table shows the total costs for various levels of output for a firm operating in a perfectly competitive market.
A. are constant.
B. increase as output increases.
C. decrease until the 2nd unit, then increase.
D. increase until the 4th unit, then decrease.
If an effective ceiling price is placed on hamburgers, then:
A. the quantity demanded will exceed the quantity supplied. B. a black market for hamburgers may evolve. C. consumers may want government to ration hamburgers. D. All of these are likely outcomes.
A subsidy is sometimes used by the government to correct the problems associated with
A. negative externalities. B. positive externalities. C. monopolies. D. public goods.