Imagine Two Countries, Lebos and Egap, That Have Identical Average

Multiple Choice

Imagine two countries, Lebos and Egap, that have identical average annual incomes. In Lebos, the poorest families one year almost always end up as the richest families the next year and become middle-income families the year after that. In Egap, however, the poor remain poor and rich remain rich. Which of the following is true about the two countries?

A) The measured distribution of annual income in any given year is more equal in Lebos than in Egap.
B) The measured distribution of annual income in any given year is more equal in Egap than in Lebos.
C) The measured distribution of annual income in any given year will be the same in Lebos and Egap.
D) The distribution of lifetime income is more equal in Egap than in Lebos.