_____ is a stock that is more unequal across households than income, which is a flow.

Question

Quizplus · Accepted Answer

Wealth is a stock variable that represents the accumulated assets and liabilities of households, which can include savings, investments, property, and debts. While income is a flow variable that represents the amount of money earned or received by households within a specific time period, such as a year. Wealth tends to be more unequal across households because it reflects not only current income, but also past income and other factors like inheritance and luck. Age, permanent income, and consumption are also important factors that can contribute to inequality, but they do not represent stock variables like wealth.

_____ Is a Stock That Is More Unequal Across Households