Question

which of the following statements about the distribution of income in the united states is correct?
a. poverty in the united states has increased dramatically in the last twenty years.
b. individuals who are less productive or who help to produce goods and services that can be sold for only a low price will earn lower incomes.
c. ownership of capital is more equally distributed than income earned from labor.
d. all of the above.

Explanation:

• Option A: Poverty in the US has not increased dramatically in the last twenty years. In fact, poverty rates have fluctuated and in some periods decreased due to economic policies and growth.
• Option B: In a market - based economy, income is often related to productivity and the value of the goods/services produced. Less productive individuals or those producing low - priced goods/services tend to earn lower incomes.
• Option C: Capital ownership (e.g., stocks, real estate, etc.) is highly concentrated. For example, a small percentage of the population owns a large share of stocks. Labor income, while also unequal, is more evenly distributed compared to capital ownership.

Answer:

B. Individuals who are less productive or who help to produce goods and services that can be sold for only a low price will earn lower incomes.