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Suppose All Persons Have the Same Innate Ability and the Same

Question 50

Multiple Choice

Suppose all persons have the same innate ability and the same access to capital markets.Which of the following will decrease inequality?


A) People vary more in their time horizon.
B) People vary more in the value they place on leisure.
C) People become more willing to leave the labor force when their wages fall.
D) People become more risk-averse.

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