Question

Which of the following is not a correct statement about the distribution of income and wealth in the United? States?

A. If pension plans are added to measures of wealth comma it is clear that the majority of households have middle levels of wealth

B.The share of total income received by the lowest quintile has not changed significantly since World War II.

C. The share of money income received by the lowest quintile has increased significantly since World War II.

D. The United States is not close to perfect income equality comma as measured by the Lorenz cuve.

E. All of the above answers are incorrect.

Answer 1

The correct answer is option C. The incorrect statement about the distribution of income and wealth in the United States is that the share of money income received by the lowest quintile has increased significantly since World War II.

Step-by-step explanation:

The distribution of income and wealth in the United States can be analyzed using tools such as quintile measurements and the Lorenz curve. When examining these measurements, we find that the statement "The share of money income received by the lowest quintile has increased significantly since World War II" is not correct.

Data from the Federal Reserve Bank's Survey of Consumer Finance show that the distribution of wealth is unequal, with significant gaps between the highest and lowest quintiles.

When evaluating statements about the United States' income and wealth distribution, we should remember that while the middle class may have access to pension plans, the distribution of wealth at the top is more concentrated. The Lorenz curve demonstrates that the United States is far from perfect income equality. Therefore, statement C is incorrect because it claims an increase in the lowest quintile's share of income since World War II, which has not occurred to a significant extent.

Answer 2

The incorrect statement about the distribution of income and wealth in the United States is "C. The share of money income received by the lowest quintile has increased significantly since World War II." as wealth inequality has actually increased since the late 1970s.

Step-by-step explanation:

The question posed asks which statement about the distribution of income and wealth in the United States is incorrect. When examining the provided statements, it becomes clear that the statement which is not correct is "C. The share of money income received by the lowest quintile has increased significantly since World War II." Concepts like quintile measurements and the Lorenz curve are tools to understand the distribution of income and wealth. Historical data and studies have shown that income inequality has instead increased, particularly from the late 1970s into the 2000s. This trend is attributed to changes in house-hold structures and labor markets, among other factors. Therefore, the majority of household wealth not being middle levels (A) is incorrect, the share of income for the lowest quintile not changing significantly (B) is a correct statement, and the fact that the United States is not close to perfect income equality (D) is true, which highlights the incorrect nature of option C.