Final answer:
Key indicators of income inequality include the distribution of income across quintiles, the Lorenz curve, and the income ratio between the richest and poorest segments. The rise in income inequality since the late 1970s has been attributed to changes in household structures and new technology's impact on wages. Government policies also play a role in adjusting levels of economic inequality.
Step-by-step explanation:
Some key indicators of income inequality include the division of the population into income groups such as quintiles and calculating the share of income each group receives. Another metric is the Lorenz curve, which shows the actual cumulative income distribution in comparison to a perfectly equal distribution. When assessing income inequality, a high ratio of income for the richest 10 percent to the poorest 10 percent can be a telling measure, although it does not provide a complete picture since it doesn't include the middle income earners. Changes in household structures, with more two-earner couples and single-parent families, along with the impact of new technologies on wages, are significant factors that have contributed to the rising income inequality from the late 1970s into the 2000s. Additionally, government policies like redistribution and estate taxes can influence economic inequality levels.