Economics (Book Only)
12th Edition
ISBN: 9781285738321
Author: Roger A. Arnold
Publisher: Cengage Learning
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Question
Chapter 29, Problem 1VQP
To determine
Distinguish the income inequality between two persons.
Expert Solution & Answer
Explanation of Solution
It cannot be agreed that the total income earned by different income groups must be always earned unequal. It can be equal to as shown in the below table:
Table 1
| Year | Income($) of individual A | Income($) of individual B |
| 2010 | 10000 | 15000 |
| 2011 | 15000 | 20000 |
| 2012 | 20000 | 25000 |
| 2013 | 25000 | 30000 |
| 2014 | 35000 | 15000 |
| Total | 105,000 | 105,000 |
The above table shows that both the individuals earn unequal in each of five years. However, the total income earned by them over five year is equal. Therefore, it cannot be always agreed that different income groups always earn differently.
Economics Concept Introduction
Income inequality: Income inequality refers to the income that is distributed among individuals unequally.
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Chapter 29 Solutions
Economics (Book Only)
Ch. 29.1 - Prob. 1STCh. 29.1 - Prob. 2STCh. 29.1 - Prob. 3STCh. 29.2 - Prob. 1STCh. 29.2 - Prob. 2STCh. 29.3 - Prob. 1STCh. 29.3 - Prob. 2STCh. 29.4 - Prob. 1STCh. 29.4 - Prob. 2STCh. 29.4 - Prob. 3ST
Ch. 29 - Prob. 1VQPCh. 29 - Prob. 2VQPCh. 29 - Prob. 3VQPCh. 29 - Prob. 4VQPCh. 29 - Prob. 5VQPCh. 29 - Prob. 1QPCh. 29 - Prob. 2QPCh. 29 - Prob. 3QPCh. 29 - Prob. 4QPCh. 29 - Prob. 5QPCh. 29 - Prob. 6QPCh. 29 - Prob. 7QPCh. 29 - Prob. 8QPCh. 29 - Prob. 9QPCh. 29 - Prob. 1WNGCh. 29 - Prob. 2WNGCh. 29 - Prob. 3WNG
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