Final answer:
Income distribution in the U.S. is commonly measured by dividing the population into quintiles or using Lorenz curves, which helps economists understand and analyze the degree of income inequality.
Step-by-step explanation:
Economists typically measure income distribution in the U.S. using a method that involves ranking all households by income from lowest to highest and then dividing them into five equal groups, known as quintiles.
By analyzing what share of the total income each quintile earns, they can assess the distribution of income and the degree of inequality. Additionally, Lorenz curves and the Survey of Consumer Finances published by the Federal Reserve Bank are tools used to measure the distribution of wealth.
Which can provide insights into the accumulated effects of income inequality over time.