13. Which one of the following statements is false?

(a) The U.S. has the highest Gini ratio among industrialized countries.

(b) A Gini ratio of one indicates absolute equality.

(c) Adding in the value of capital gains tends to increase measures of

economic inequality.

(d) Adding in the effect of taxation tends to reduce measures of eco-

nomic inequality.

(e) The lowest Gini ratios for the U.S. occurred in the late 1960s.

14. Approximately what percentage of total wealth in the United States is

owned by the richest 1 percent of American households?

(a) 5 percent

(b) 10 percent

(c) 20 percent

(d) 45 percent

(e) 65 percent

15. Income from rents, profits, and interest is known as . . .

(a) capital income.

(b) dividend income.

(c) rent-seeking income.

(d) basic needs income.

(e) capabilities income.

16. Which of the following statements most accurately describes the history

of income inequality in the United States?

(a) Inequality has continually increased since the 1920s.

(b) Inequality has continually decreased since the 1920s.

(c) Inequality tended to increase until the 1950s, decrease until the

1980s, and then increase.

(d) Inequality tended to decrease after the Great Depression, and in-

crease since the late 1960s.

(e) Inequality tended to increase after the Great Depression, and re-

main steady since the late 1960s.