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-The Table Shows the Distribution of Human and Non-Human Capital

Question 325

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  -The table shows the distribution of human and non-human capital for two people, Sam and Janet. a) Looking just at tangible assets (non-human capital), by how many times does Janet's wealth exceed Sam's? b) Assume that both human and non-human capital earn a 10 percent annual interest rate. Calculate Sam's and Janet's total income. c) By how many times does Janet's total income exceed Sam's? d) Which comparison results in a more equal distribution? e) Which comparison gives a better indication of each person's economic condition?
-The table shows the distribution of human and non-human capital for two people, Sam and Janet.
a) Looking just at tangible assets (non-human capital), by how many times does Janet's wealth exceed Sam's?
b) Assume that both human and non-human capital earn a 10 percent annual interest rate. Calculate Sam's and Janet's total income.
c) By how many times does Janet's total income exceed Sam's?
d) Which comparison results in a more equal distribution?
e) Which comparison gives a better indication of each person's economic condition?

Correct Answer:

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a) Janet has 20 times as much wealth as ...

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