Which one of the following is not correct?<?xml:namespace prefix = o ns = \"urn:

Question

Which one of the following is not correct?<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

A) In antitrust cases defendants attempt to define the relevant market broadly.

B) The courts have varied over time in their interpretations of the antitrust statutes.

C) Antitrust suits can only be originated by the Federal Trade Commission.

D) In antitrust cases the prosecution attempts to define the relevant market narrowly

2. Which of the following is most likely to increase the 4-firm concentration ratio of a particular industry?

A) a horizontal merger between two of the industry’s largest firms

B) a vertical merger between one of an industry’s largest firms and one of the many input suppliers in the resource market.

C) a conglomerate merger involving one of the industry’s major firms

D) an agreement by all the industry firms to divide up the market among them

3. The lifetime distribution of income is more equal than the annual distribution. This statement is:

A) true, because the rich have gotten richer and the poor have gotten poorer.

B) true, because there is considerable income mobility over time.

C) false, because people tend to stay in the same income quintile over extended periods of time.

D) false, because the rich have gotten richer and the poor have gotten poorer.

Explanation / Answer

3)

Very interesting question. I have no hard data for you, but there are many reasons to believe that the lifetime distribution is even more unequal:

1. The rich tend to live longer than the poor and tend to be able to work longer. (Consider the ages for the Supreme Court judges, many doctors, etc.)

2. The inequalities in yearly income have been increasing rather than staying constant or decreasing. This suggests that for those people alive today, their lifetime distribution will be more unequal than we are seeing now (though perhaps less than the inequality of a single year 10 or 20 years from now)

But as you can see, it would be really hard to quantify what "lifetime distribution of inequality" would mean exactly.

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