Chapter 12, Problem 3DQ

To determine

In 1984, individual balances in private retirement plans were $865 billion. Twenty-five years later, they rose to almost $13 trillion. In general, balances in private retirement plans are not included in the statisti s that show rising income or wealth inequality. How might such an oversight affect our conclusions about inequality?

Concept Introduction:

Inequality is a type of discrimination based on the income and other aspects of an individual. According to Karl Marx, inequality of income has increased in the market because labors are exploited at an extreme level. Hence, rich becomes richer and poor becomes poorer and inequality gap widens.