Microeconomics 20th Edition by McConnell, Sean Flynn, Stanley Brue

Exercise 15

Last word Go to Table 1 in the Last Word and compute the ratio of average wealth to median wealth for each of the 7 years. What trend do you find What is your explanation for the trend The federal estate tax redistributes wealth in two ways: by encouraging charitable giving, which reduces the taxable estate, and by heavily taxing extraordinarily large estates and using the proceeds to fund government programs. Do you favor repealing the estate tax Explain.
TABLE 1 Median and Average Family Wealth, Survey Years 1995-2010 (in 2010 Dollars)

*The averages greatly exceed the medians because the averages are boosted by the multibillion-dollar wealth of a relatively few families.