This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: How do income and wealth change over a person's lifetime? How does this affect the distribution of ... (Read 92 times)

jeatrice

  • Hero Member
  • *****
  • Posts: 543
on: Jun 29, 2018
How do income and wealth change over a person's lifetime? How does this affect the distribution of income at a point in time?
 
  What will be an ideal response?

Question 2

What is the meaning of the term marginal rate of substitution?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Koolkid240

  • Sr. Member
  • ****
  • Posts: 357
Reply #1 on: Jun 29, 2018
Answer to Question 1

On the average, incomes start out low, increase as the household's workers gain experience and other human capital, peak when the household's workers reach retirement age, and then fall after retirement. On the average, wealth also starts out low, increases as income increases and workers save for retirement, peaks at the point of retirement, then falls after retirement. Because there are always people at all stages of life, the distribution of income at a point in time overstates the actual inequality. The discrepancy would be greater for countries with large percentages of young and retired workers.

Answer to Question 2

The marginal rate of substitution between two goods is the rate at which a consumer is willing to give up some of one in exchange for more of the other, and remain indifferent between the old and the new combination. It is also the slope of an indifference curve between the two goods.


jeatrice

  • Member
  • Posts: 543
Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

adf223

  • Member
  • Posts: 304
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

In 2010, opiate painkllers, such as morphine, OxyContin®, and Vicodin®, were tied to almost 60% of drug overdose deaths.

Did you know?

Many people have small pouches in their colons that bulge outward through weak spots. Each pouch is called a diverticulum. About 10% of Americans older than age 40 years have diverticulosis, which, when the pouches become infected or inflamed, is called diverticulitis. The main cause of diverticular disease is a low-fiber diet.

Did you know?

Patients who have been on total parenteral nutrition for more than a few days may need to have foods gradually reintroduced to give the digestive tract time to start working again.

Did you know?

Before a vaccine is licensed in the USA, the Food and Drug Administration (FDA) reviews it for safety and effectiveness. The CDC then reviews all studies again, as well as the American Academy of Pediatrics and the American Academy of Family Physicians. Every lot of vaccine is tested before administration to the public, and the FDA regularly inspects vaccine manufacturers' facilities.

Did you know?

Certain chemicals, after ingestion, can be converted by the body into cyanide. Most of these chemicals have been removed from the market, but some old nail polish remover, solvents, and plastics manufacturing solutions can contain these substances.

Mediterranean woodland and shrubland distribution and climate. Mediterranean woodland and shrubland distribution and climate.
Distribution of Neandertal sites in Europe and western Asia. Distribution of Neandertal sites in Europe and western Asia.
Karst Distribution Karst Distribution
Saving Rate by Decile of Income per Capita Saving Rate by Decile of Income per Capita
Change in the frequency of a lethal recessive allele, a Change in the frequency of a lethal recessive allele, a
The frequency distribution of the allele in Africa, Southern Europe, the Middle East The frequency distribution of the allele in Africa, Southern Europe, the Middle East
Video: Carpal Tunnel Syndrome

For a complete list of videos, visit our video library