Question

Which of the following is true about income inequality? After 10 years, the large majority of...

Which of the following is true about income inequality?

After 10 years, the large majority of people in the lowest quintile moves up to a higher quintile.
Income inequality leads to social instability.
A system of income inequality discourages people to work hard and innovate.
None of the above is true.
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Ans: After 10 years, the large majority of people in the lowest quintile moves up to a higher quintile.

Explanation:

Income inequality refers to the unequal distribution of household or individual income across the various participants in an economy. When after 10 years, the large majority of people in the lowest quintile moves up to a higher quintile, inequality will increase.

Thus, 1st option is correct answer.

Add a comment
Know the answer?
Add Answer to:
Which of the following is true about income inequality? After 10 years, the large majority of...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Which of the following is true about income inequality? Income inequality is necessary to establish social...

    Which of the following is true about income inequality? Income inequality is necessary to establish social stability. In order for a country to be productive, a system of income inequality requires significant government redistribution of wealth and thus relatively high taxes. An economic system with significant income inequality can lead to political inequalities. None of the listed answers is true. The greater the income inequality, the less efficiently an economy operates.

  • PART A A system of income inequality: provides those who are more productive the ability to...

    PART A A system of income inequality: provides those who are more productive the ability to reap higher rewards. generally leads to a higher average standard of living than a system of income equality. provides incentives for individuals and businesses to be productive and efficient. All of the listed answers are correct. PART B Which of the following is true about income inequality? Income inequality is necessary to establish social stability. In order for a country to be productive, a...

  • 1. Income inequality and the poverty rate The following table summarizes the income distribution for the...

    1. Income inequality and the poverty rate The following table summarizes the income distribution for the town of Perkopia, which has a population of 10,000 people. Every individual within an income group earns the same income, and the total annual income in the economy is $500,000,000. Suppose that in 2016, the poverty line is set at an annual income of $40,700 for an individual. Share of Total Income in Perkopia (Percent) Fourth Quintile Second Quintile Middle Quintile Highest Quintile Year...

  • Homework (Ch 20) 1. Income inequality and the poverty rate The following table summarizes the income...

    Homework (Ch 20) 1. Income inequality and the poverty rate The following table summarizes the income distribution for the town of Perkopia, which has a population of 10,000 people. Every individual within an income group earns the same income, and the total annual income in the economy is $500,000,000. Suppose that in 2001, the poverty line is set at an annual income of $47,000 for an individual, Year Lowest Quintile 4.0 2001 Share of Total Income in Perkopia (Percent) Second...

  • According to our text, which of the following is a common misconception (something not true) about...

    According to our text, which of the following is a common misconception (something not true) about income inequality? Countries with greater income inequalities have higher standards of living. Greater income inequality means that the relative difference in incomes between the rich and the poor is widening. Greater income inequality means a higher absolute standard of living for the wealthy and a lower one for the poor. None of the above is a misconception about income inequality.

  • 6. Income inequality and the poverty rate The following table summarizes the income distribution for the...

    6. Income inequality and the poverty rate The following table summarizes the income distribution for the town of Perkopia, which has a population of 10,000 people. Every individual within an income group earns the same income, and the total annual income in the economy is $500,000,000. Suppose that in 2000, the poverty income threshold, or poverty line, is set at an annual income of $27,400 for an individual.Share of Total Income in Perkopia (Percent)YearLowest QuintileSecond QuintileMiddle QuintileFourth QuintileHighest Quintile19945.011.016.024.044.020003.89.915.222.548.620063.59.214.822.050.520123.28.214.021.553.1The data in the...

  • 1. Income inequality and the poverty rate The following table summarizes the income distribution for the...

    1. Income inequality and the poverty rate The following table summarizes the income distribution for the town of Perkopia, which has a population of 10,000 people. Every individual within an income group earns the same income, and the total annual income in the economy is $500,000,000. Suppose that in 2016, the poverty line is set at an annual income of $40,700 for an individual Share of Total Income in Perkopia Percent Middle Lowest Second Fourth uintile 240 22.8 22.4 21.6...

  • Search this course Homework (Ch 20) 1. Income inequality and the poverty rate X The following...

    Search this course Homework (Ch 20) 1. Income inequality and the poverty rate X The following table summarizes the income distribution for the town of Perkopia, which has a population of 10,000 people. Every individual within an income group earns the same income, and the total annual income in the economy is $500,000,000. Suppose that in 2013, the poverty line is set at an annual income of $43,275 for an individual, Year Lowest Quintile 3.0 2001 Share of Total Income...

  • Every year, the U.S. Census Bureau conducts an income survey of about 60,000 American families that...

    Every year, the U.S. Census Bureau conducts an income survey of about 60,000 American families that are carefully selected to represent the whole population. The data collected are used to measure income inequality. Which of the following is a reason that consus data may provide an inaccurate measure of income inequality? In kind transfers do not improve standards of living but are counted as income. Very few people move from one Income quintile to another over the years. Higher income...

  • 6. Income inequality and the poverty rate Dismiss All Please Wait . . . Please Wait... The following table summarize...

    6. Income inequality and the poverty rate Dismiss All Please Wait . . . Please Wait... The following table summarizes the income distribution for the town of Perkopia, which has a population of 10,000 people. Every individual within an income group earns the same income, and the total annual income in the economy is $500,000,000. Suppose that in 2000, the poverty income threshold, or poverty line, is set at an annual income of $12,700 for an individual. Year Share of...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT