ECONOMICS
INCOME DISTRIBUTION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The rich have gotten poorer as a percentage of all income earned.
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The poor have gotten richer as a percentage of all income earned.
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The poor have gotten richer in absolute real dollar earnings (purchasing power)
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None of the Above
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Detailed explanation-1: -The answer is a. Income inequality has increased steadily in the U.S. since 1970.
Detailed explanation-2: -Reasons for the wealth gap To discover why this gap emerged, the researchers broke wealth down into three key drivers: differences in saving rates; wages; and capital gains rates. During the decades surveyed, the research showed that house prices had gone up dramatically in both regions, as had financial asset prices.
Detailed explanation-3: -Lack of shelter. Limited access to clean water resources. Food insecurity. Physical disabilities. Lack of access to health care. Unemployment. Absence of social services. Gender discrimination. More items
Detailed explanation-4: -(i) Wages are determined by labor market. (ii) Education affects wages. (i) Economic neoliberalism. (iii) A Kuznets curve – Phases of development. 22-Jan-2015