Question

Review of pay scales indicates that CEOs now earn an average of 419 times more pay than blue-collar workers, compared to a ratio of 42 times in 1980. This change in the CEO-to-blue-collar worker pay ratio reflects:

A) Decreased income inequality
B) Increased income equality
C) Stable income distribution
D) Widening income disparity

Answer 1

The increase in the CEO-to-blue-collar worker pay ratio from 42 times in 1980 to 419 times signifies a significant d. widening of income disparity, showing a stark increase in income inequality.

Step-by-step explanation:

The change in the CEO-to-blue-collar worker pay ratio from 42 times in 1980 to 419 times reflects widening income disparity. Over the years, CEO pay has increased dramatically compared to the pay of the average worker. Reports and analyses, such as those by Manuel Castells and from sources like The Consumerist, indicate that a significant increase in income inequality started in the 1980s, where the wealth of the top 1 percent drastically increased. Meanwhile, the earnings of the average worker have only grown marginally, leading to a greater divide between the rich and the poor.