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5. The share of income going to the highest 10 percent of
income receivers is:
A. nearly 75 percent in the United States.
B. lower in the United States than in some South American
countries such as Mexico, Guatemala, and Brazil.
C. lower today in the United States than in 1969.
D. remarkably similar over a wide range of nations, including
those which are rich and those which are poor.
16. The Gini ratio of income inequality ranges
between:
A. 0 and 10,000.
B. 1 and 10.
C. -1 and +1.
D. 0 and 1.
17. Income mobility:
A. contributes to greater wealth inequality in the United
States.
B. is less in the United States than in most developing
nations.
C. is the movement of individuals and households from one
income quintile to another over time.
D. makes lifetime income inequality among income receivers in
the United States greater than income inequality in any single
year.
18. In the United States:
A. taxes decrease, but transfers increase, income
inequality.
B. taxes increase, but transfers reduce, income
inequality.
C. both taxes and transfers decrease income inequality.
D. both taxes and transfers increase income inequality.
19. Each of the following contributes to income inequality
except:
A. differences in ability and training.
B. differences in job tastes.
C. differences in wealth ownership.
D. government transfers.
20. Wealth represents:
A. a stock of real and financial assets.
B. a flow of income.
C. financial assets only.
D. real assets only.
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