A person's lifetime income smooths out the highs and lows of the life cycle.Therefore,lifetime incomes are surely more equally distributed across the population than are annual incomes.

Question

Quizplus · Accepted Answer

Lifetime income takes into account a person's earning potential over their entire working life, which includes the years of high and low income. This smoothes out the fluctuations in annual income and leads to a more equal distribution of income across the population. Therefore, the statement is true.

A Person's Lifetime Income Smooths Out the Highs and Lows