The figure below shows the proportion of children in earnings quantile conditional on their father's earnings quantile in the US and Denmark,respectively. Based on this information, which of the following statements is correct?USI Child in poorest 20%I Child in richest 20%DENMARK0.4000.40.40.3600.3370.30.3-0.2530.20.20.1670.1610.0980.10.10.074Poorest 20%Richest 20%Poorest 20%Richest 20%Father's earnings quintileSelect one:O a. In Denmark, it is far more difficult for the richest families to preserve their status for the next generation than in the US.O b. In the US, 7.4% of those from the poorest 20% of families managed to move up to become part of the richest 20%.O c. The figure suggests that there is very little governments can do to reduce intergenerational transmission of economic status.O d. The data provides support for the "American Dream", a term coined in 1931 by James Truslow Adams that refers to "a dream of socialorder in which each man and woman shall be able to attain to the fullest stature of which they are innately capable ... regardless of thefortuitous circumstances of birth or position".Proportion of children in earnings quintileconditional on father's earnings quintile

Here, only option 1 is correct. Children born in rich families folks are less likely to become poor…

The figure below shows the proportion of children in earnings quantile conditional on their father's earnings quantile in the US and Denma respectively. Based on this information, which of the following statements is correct? US I Child in poorest 20% I Child in richest 20% DENMARK 0.400 04- 0.4 0.360 0.337 0. 0.3- 0253 0.2 0.2 0.167 0161 0.098 0.074 0.1 0- Poorest 20% Richest 20% Poorest 20% Richest 20% Father's earnings quintile Proportion of children in earnings quintile conditional on father's earnings quintile

The figure below shows the proportion of children in earnings quantile conditional on their father's earnings quantile in the US and Denma respectively. Based on this information, which of the following statements is correct? US I Child in poorest 20% I Child in richest 20% DENMARK 0.400 04- 0.4 0.360 0.337 0. 0.3- 0253 0.2 0.2 0.167 0161 0.098 0.074 0.1 0- Poorest 20% Richest 20% Poorest 20% Richest 20% Father's earnings quintile Proportion of children in earnings quintile conditional on father's earnings quintile

Microeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506893

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter13: Earnings, Productivity, And The Job Market

Section: Chapter Questions

Problem 3CQ

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