17. Which one of the following statements is true?

(a) The countries with the lowest Gini coefficients have Gini coeffi-

cients around 0.60.

(b) The countries with the highest Gini coefficients have Gini coeffi-

cients around 0.95.

(c) The United States has the highest Gini coefficient of any country.

(d) Latin American countries tend to have the lowest Gini coefficients.

(e) Inequality can be low in both high-income and low-income coun-

tries.

18. In the United States, the Gini coefficient for post-tax income is . . .

(a) less than the Gini coefficient for pre-tax income.

(b) equal to the Gini coefficient for pre-tax income.

(c) greater than the Gini coefficient for pre-tax income.

(d) equal to the Gini coefficient for wealth.

(e) greater than the Gini coefficient for wealth.

19. If children born in low-income households and high-income households

have similar chances of earning high incomes in the future, then we can

conclude that . . .

(a) income inequality is high.

(b) income inequality won't change over time.

(c) economic mobility is high.

(d) economic mobility is low.

(e) wealth equality is high.

20. An individual realizes capital gains on an asset when . . .

(a) the value of an asset increases faster than inflation.

(b) his asset appreciates in value.

(c) his asset depreciates in value.

(d) he sells the asset for more than it originally cost.

(e) he sells the asset for less than it originally cost.