Explanation: An individual's wealth, or net worth, is calculated by subtracting total liabilities from total assets, not by adding them. This represents the net financial standing at a specific point in time.

Explanation: Saving is correctly defined as income minus consumption. Any portion of income not spent on consumption is saved, thereby contributing to an increase in wealth.

Explanation: Wealth inequality specifically refers to the uneven distribution of assets and net worth among individuals and entities within a society, not solely income distribution.

Explanation: The distribution of wealth is defined as a comparison of the wealth held by various members or groups within a society, serving as a key indicator of economic inequality.

Explanation: The fundamental distinction lies in their focus: wealth distribution examines asset ownership (assets minus liabilities), whereas income distribution pertains to current earnings or monetary flow over a period.

Explanation: An individual's net worth is calculated by subtracting their total liabilities (what they owe) from their total assets (what they own).

Explanation: Saving, defined as income minus consumption, is the direct driver of changes in wealth. Any income not expended on consumption contributes to an increase in an individual's wealth.

Explanation: Comparing the wealth of the 99th percentile to the median (50th percentile) is a common analytical method used to quantify the extent of wealth concentration at the top of the distribution relative to the middle.

Explanation: The Pareto Distribution, when applied to wealth, typically indicates that wealth is highly concentrated, with a small percentage of the population holding a disproportionately large share.

Explanation: Wealth over People (WOP) curves sort households from richest to poorest on the horizontal axis. The vertical axis represents wealth relative to the richest percentile, illustrating wealth concentration.

Explanation: In the context of WOP curves, a 'perfect tyranny' society represents a theoretical extreme of complete wealth inequality, where the top percentile holds all wealth, leaving others with none.

Explanation: A Gini coefficient of 0 signifies perfect equality, where all individuals possess the same amount of wealth. Maximum inequality is represented by a coefficient of 1 (or 100%).

Explanation: According to the Credit Suisse 'Global Wealth Report 2021', Brunei had the highest Gini coefficient (91.6%), indicating extreme inequality, while Slovakia had the lowest (50.3%), indicating the most equality.

Explanation: Slovakia recorded the lowest Gini coefficient for wealth distribution in 2021 at 50.3%, signifying the most equal distribution among the countries analyzed in the Credit Suisse report.

Explanation: The trend in wealth inequality between the 2019 and 2021 Credit Suisse reports indicated an increasing trend for many countries, as reflected in their Gini coefficients.

Explanation: The table of country-specific wealth statistics indicates that the Gini coefficient for the United States in 2021 was 85.0%, reflecting a high level of wealth inequality.

Explanation: The provided table offers detailed data for numerous countries, encompassing metrics such as the number of adults, mean and median wealth per adult, wealth distribution percentages, and the Gini coefficient.

Explanation: A common method for analyzing wealth concentration involves comparing the wealth of the 99th percentile to the median (50th percentile), often expressed as a ratio (P99/P50) to quantify top-end concentration.

Explanation: The Pareto Distribution, frequently applied to wealth data, indicates that wealth is highly concentrated, with a small segment of the population possessing a significantly larger proportion of total wealth.

Explanation: Wealth over People (WOP) curves serve as a graphical tool to visually represent the distribution of wealth across a population, illustrating patterns of concentration.

Explanation: One of the theoretical extremes depicted by WOP curves is a 'perfect tyranny' society, characterized by the top percentile holding all national wealth, leaving the remainder of the population with none.

Explanation: A common method for analyzing wealth concentration involves comparing the wealth of the 99th percentile to the median (50th percentile), often expressed as a ratio (P99/P50) to quantify top-end concentration.

Explanation: A Gini coefficient of 1 (or 100%) represents the theoretical maximum level of inequality, signifying a scenario where a single entity or individual holds all the wealth.

Explanation: Brunei registered the highest Gini coefficient for wealth distribution in 2021, recorded at 91.6%, signifying a highly unequal distribution of wealth within the country.

Explanation: Slovakia reported the lowest Gini coefficient for wealth distribution in 2021 at 50.3%, indicating the most equal distribution among the countries analyzed in the Credit Suisse report.

Explanation: Comparison of the 2019 and 2021 Credit Suisse reports reveals an increasing trend in wealth inequality globally, as evidenced by rising Gini coefficients in numerous countries.

Explanation: The UN's 'inclusive wealth' concept expands beyond physical and financial assets to include natural capital and human capital, providing a more comprehensive measure of national wealth.

Explanation: The 2000 World Institute for Development Economics Research report found that the bottom half of the world's adult population owned approximately 1% of global wealth.

Explanation: The 2021 Oxfam report stated that the 10 richest men collectively owned more wealth than the bottom 3.1 billion people combined.

Explanation: The COVID-19 pandemic widened wealth inequality, negatively impacting lower wealth groups while top wealth groups often benefited from asset price increases.

Explanation: In 2020, the United States had the largest number of dollar millionaires globally, followed by China.

Explanation: Historically, wealth has been concentrated in G8 nations and Western industrialized countries, a pattern that largely persisted into the 21st century.

Explanation: North America holds a disproportionately larger share of global net worth relative to its population size compared to Asia, according to comparative data.

Explanation: In 2011, reports indicated that the wealth of the top 400 wealthiest Americans combined exceeded that of the bottom half of the American population.

Explanation: A 2000 report by the World Institute for Development Economics Research indicated that the richest 10% of adults owned approximately 85% of the world's total assets.

Explanation: According to a 2021 Oxfam report, the collective wealth of the 10 richest men surpassed that of the bottom 3.1 billion people combined.

Explanation: The COVID-19 pandemic exacerbated wealth inequality, as lower wealth groups were disproportionately affected while higher wealth groups often saw asset values increase.

Explanation: In 2020, the United States recorded the highest number of dollar millionaires globally, followed by China and then Japan.

Explanation: North America held a significantly larger share of global net worth relative to its population size compared to Asia, indicating a higher concentration of wealth per capita.

Explanation: Reports from 2011 indicated that the collective wealth of the 400 wealthiest Americans surpassed that of the bottom half of the entire American population combined, highlighting extreme wealth concentration.

Explanation: The 2013 Credit Suisse infographic revealed that the top 1% of adults globally held approximately half of the world's total net wealth, not less than a quarter.

Explanation: The comparative data indicates that Asia, despite housing over half the global population, held less than 30% of the world's net worth.

Explanation: The 2013 Credit Suisse 'Global Wealth Report' infographic indicated that the top 1% of adults globally possessed approximately half of the world's total net wealth, demonstrating significant concentration.

Explanation: Prior to the 1960s, the primary sources for data on wealth distribution were wealth tax and estate tax records, supplemented by smaller surveys and other data collections.

Explanation: Recent decades have seen a shift in research focus from analyzing broad distributional characteristics to examining the specific causal factors that contribute to individual differences in wealth holdings.

Explanation: Inherited wealth is identified as a significant factor that can provide a 'substantial head start' in wealth accumulation, underscoring the role of family background and inherited assets.

Explanation: A 2012 report indicated that over 60 percent of the individuals listed among the Forbes 400 richest Americans had grown up with significant privilege, suggesting inherited advantage is a common characteristic.

Explanation: Contrary to decreasing, the share of wealth held by the top 1% in the US increased from 34.6% to 37.1% following the Great Recession, while median household wealth declined more substantially.

Explanation: Data indicates a positive correlation in the US between higher educational attainment and increased median household wealth, suggesting education is a significant factor in wealth accumulation.

Explanation: Married couples in the US generally exhibit significantly higher median wealth compared to single individuals, with their median wealth being nearly three times greater.

Explanation: Plutocracy facilitates wealth concentration when affluent individuals or groups exert disproportionate influence on governmental processes, potentially leading to policies that further benefit the wealthy.

Explanation: Various forms of taxation, including wealth taxes, inheritance taxes, and progressive income taxes, are considered counterbalances that aim to redistribute wealth and mitigate its excessive concentration.

Explanation: Warren Buffett famously stated that his 'class,' the rich class, is engaged in class warfare and is winning, expressing concern about this dynamic.

Explanation: Historical records indicate that the Roman Republic implemented laws as early as the third century B.C. to restrict the amount of wealth or land that any single family could hold.

Explanation: Francis Bacon advised against the concentration of state wealth, metaphorically stating that money, like fertilizer, is beneficial only when spread widely, not held by a few.

Explanation: The combination of technological advancements, social liberalism, and organized labor movements has contributed to diminishing extreme poverty in developed nations, although global wealth gaps persist.

Explanation: The World Economic Forum's 2014 Outlook identified widening income disparities as the second most significant global risk, not a minor one.

Explanation: The caption suggests a positive relationship between higher educational attainment and increased household wealth in the US, indicating education's significant role in economic success, not little impact.

Explanation: Before the 1960s, the primary sources for data on wealth distribution were wealth tax and estate tax records, supplemented by smaller, often unrepresentative surveys.

Explanation: Data from 2021 indicates a positive correlation in the US between higher levels of educational attainment and increased median household wealth, suggesting education is a significant factor in wealth accumulation.

Explanation: Married couples in the US tend to possess substantially higher median wealth compared to single individuals, often nearly three times greater.

Explanation: Wealth concentration refers to the process by which wealth becomes increasingly held by a smaller number of entities. Its primary prerequisite is an initial unequal distribution of wealth within the population.

Explanation: Plutocracy contributes to wealth concentration when the affluent exert disproportionate influence over governmental and legislative processes, potentially leading to policies that further benefit the wealthy and exacerbate disparities.

Explanation: Various forms of taxation, such as wealth taxes, inheritance taxes, and progressive income taxation, are identified as counterbalances aimed at redistributing wealth and preventing its excessive concentration.

Explanation: Warren Buffett's statement implies that the wealthy class is actively participating in and prevailing in a class conflict, highlighting a concern about this dynamic.

Explanation: Francis Bacon advised that effective policy dictates that state wealth should not be concentrated among a select few, likening money's utility to fertilizer, which is beneficial only when widely distributed.

Explanation: The rise of Communism was partly fueled by perceptions of extreme inequality within capitalist systems, where significant disparities existed between the affluent and the impoverished.

Explanation: Technological advancements, principles of social liberalism, and organized labor movements have collectively contributed to diminishing extreme poverty in developed nations.

Explanation: Historical records indicate that the Roman Republic implemented laws as early as the third century B.C. to restrict the amount of wealth or land that any single family could hold.

Explanation: The correlation between being rich and earning more is explained through mechanisms including oligarchy (wealth providing access to high-paid employment), meritocracy (high incomes correlating with existing wealth), and plutocracy (wealthy influencing policies).

Explanation: In 2011, it was reported that the 400 wealthiest Americans collectively held more wealth than the bottom half of the entire American population combined, highlighting extreme wealth concentration.

Explanation: The 2012 report indicated that over 60 percent of the individuals listed among the Forbes 400 richest Americans had grown up with significant privilege, suggesting inherited advantage is a common characteristic.

Explanation: Following the Great Recession, the share of total wealth owned by the top 1% of the US population increased from 34.6% to 37.1%, while median household wealth declined more substantially.

Explanation: Various forms of taxation, such as wealth taxes, inheritance taxes, and progressive income taxation, are identified as counterbalances aimed at redistributing wealth and preventing its excessive concentration.

Explanation: Warren Buffett's statement implies that the wealthy class is actively participating in and prevailing in a class conflict, highlighting a concern about this dynamic.

Explanation: Francis Bacon advised that effective policy dictates that state wealth should not be concentrated among a select few, likening money's utility to fertilizer, which is beneficial only when widely distributed.

Explanation: The rise of Communism was partly fueled by perceptions of extreme inequality within capitalist systems, where significant disparities existed between the affluent and the impoverished.

Explanation: Recent research has shifted from analyzing broad distributional characteristics to examining the specific causal factors that contribute to individual differences in wealth holdings.

Explanation: The caption suggests a positive relationship in the US between the level of education achieved and the amount of household wealth accumulated, indicating education's role in economic success.

Explanation: The study by Dan Ariely and Michael Norton found that Americans tend to significantly underestimate the current level of wealth inequality and prefer a more equitable distribution than exists.

Explanation: Between 2019 and 2022, the average net worth in the US grew at a faster rate than the median net worth, largely due to the disproportionate increase in wealth at the very top.

Explanation: The study by Ariely and Norton found that Americans generally underestimate the extent of current wealth inequality and prefer a more equitable distribution than what exists.

Explanation: In its 2014 Outlook on the Global Agenda, the World Economic Forum designated widening income disparities as the second most significant global risk.

Explanation: In its 2014 Outlook on the Global Agenda, the World Economic Forum designated widening income disparities as the second most significant global risk.