Question

a. from the list below, select the measure(s) that are measures of inequality. wealth spending intergenerational mobility permanent income b. why is it important to consider more than just annual income when assessing inequality? imports and exports should also be counted to get a full picture or earnings. living standards and the quality of life encompass more than just current income. the poverty rate is based on diminishing marginal utility, which depends on more than income. illegal activities skew gdp and gnp, and this impacts citizens incomes. © macmillan learning inequality, social insurance, and redistribution — end of chapter problem discussions of inequality often focus on annual income inequality.

Explanation:

a. Wealth is a measure of inequality as it shows the distribution of accumulated assets among individuals or groups. Permanent income can also be a measure as it reflects long - term earning capacity rather than just short - term fluctuations. Spending can indicate consumption inequality. Intergenerational mobility is more about the movement of economic status across generations rather than a direct measure of current inequality.
b. Considering more than just annual income is important because annual income can be volatile and doesn't account for long - term economic well - being. Permanent income gives a more stable view. Wealth represents accumulated economic resources. Spending reflects actual consumption patterns. Also, factors like illegal activities not being counted in GDP/GNP, the poverty rate being based on more than income (e.g., living standards and quality of life) show the need for a broader perspective. Imports and exports affect a country's economic situation and can impact inequality in terms of trade - related income disparities and access to goods and services.

Answer:

a. Wealth, Permanent income, Spending
b. Annual income can be volatile; other factors like long - term economic well - being (permanent income), accumulated resources (wealth), consumption patterns (spending), and non - income related aspects (living standards, illegal activities' impact on GDP/GNP) are important for a full picture of inequality.