Suppose that Jane earns $10,000 in year 1 and $15,000 in year 2, while Jim earns $15,000 in year 1 and $10,000 in year 2. Is there income equality for the two individuals?

Question

Quizplus · Accepted Answer

The annual data show that Jane earns less than Jim in year 1 but more than him in year 2, indicating inequality. However, when considering the two-year data, it is seen that Jane's total income ($25,000) is the same as Jim's total income ($25,000), indicating equality. Therefore, the annual data indicate inequality while the two-year data indicate equality.

Suppose That Jane Earns $10,000 in Year 1 and $15,000