Principles Of Economics, Student Value Edition Plus Mylab Economics With Pearson Etext -- Access Card Package (12th Edition)
12th Edition
ISBN: 9780134419381
Author: CASE
Publisher: PEARSON
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Question
Chapter 18, Problem 8.1P
To determine
Identify the role of wealth distribution in different residents.
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In 2015, Forbes magazine listed Bill Gates, the founder of Microsoft, as the richest person in the United States. His personal wealth was estimated to be $76 billion. Given that there were about 322 million people living in the United States that year, how much could each person have received if Gates’s wealth had been divided equally among the population of the United States?
In a society with 240,000 households, 10,000 households earn $4 each, 4,000 households earn $2 each, 10,000 households earn $10 each, and the rest earn $1 each.What is the income share of the third quintile? (Not the cumulative income share, just the share of that quintile.) Please write down the answer with two decimal points in percentage form without the % sign. XX.xx, NOT XX.xx%
Why is social class a better indicator than income in assessing a person's possible product Purchase
Chapter 18 Solutions
Principles Of Economics, Student Value Edition Plus Mylab Economics With Pearson Etext -- Access Card Package (12th Edition)
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Similar questions
- Explain why a lump-sum government transfer can entice some workers to stop working (and entices no one to start working) while the earned income tax credit can entice some people who otherwise would not work to start working (and entices no one to stop working).arrow_forwardThe top 1 percent of American households hold one-third of the total wealth. T or F?arrow_forwardUse the information above to help answer these last two questions Would this transfer increase, decrease, or have no effect on income inequality in this group? Redistributing income from the highest earner to the lowest one would reduce the utility of the top earner and increase the utility of the lowest earner. But what would happen to overall utility in the economy? Would it increase, decrease, or remain the same? Explain your answer. (Hint: does the marginal utility of income diminish as one earns more?)arrow_forward
- The top 1 percent of American households hold nearly 40percent of the total wealth. T or F?arrow_forwardHow do the greatest disparities of wealth exist in the United States?arrow_forwardNow suppose that there is mobility in the labour market in country Alpha and we are in the pre-minimum wage period. Country Alpha receives migrants from country Beta and these migrants are positively selected. If we believe in the Roy model, do you expect country Alpha or country Beta to have a higher income inequality?arrow_forward
- Please answer based on information above. Would this transfer increase, decrease, or have no effect on income inequality in this group? Redistributing income from the highest earner to the lowest one would reduce the utility of the top earner and increase the utility of the lowest earner. But what would happen to overall utility in the economy? Would it increase, decrease, or remain the same? Explain your answer. (Hint: does the marginal utility of income diminish as one earns more?)arrow_forwardHow comprehensive income is measured according to Haig Simon's definition?arrow_forwardIs poverty an unfortunate circumstance or a character defect?arrow_forward
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