Author Question: Which is distributed more equally: income or wealth? What will be an ideal ... (Read 125 times)

rmenurse · **on:** Jun 29, 2018

Which is distributed more equally: income or wealth?

What will be an ideal response?

Question 2

The above figure shows the marginal private benefit and marginal social cost of a college education. A 10,000 subsidy to colleges results in a college charging tuition of

A) 0.
B) 10,000.
C) 20,000.
D) 30,000.

joneynes · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

The income distribution is much more equal than the wealth distribution. The poorest 50 percent of wealth holders own only 1.1 percent of wealth and the richest 10 percent own about 75 percent of wealth. For income, the poorest 40 percent of households receive about 12 percent of total income and the richest 20 percent of households receive about 50 percent of total income.

Answer to Question 2

B