Question

Comparing income distribution figures in 1968 to 2011, which of the following groups saw an increase in their share of total income for American families?

Question 2 options:

	the second fifth
	the third fifth
	the fourth fifth
	the highest fifth

Answer 1

Income distribution is the equality or smoothness with which income is spread out over a group of population. If everyone earns the same amount of money than there is no income inequality.

In United States the wealth share of the richest 1% rose the highest between 1968 to 2011, even though several measures were taken to reduce income inequality such as rise in tax rates. Thus the highest fifth of the American families saw an increase as the US shifts relatively less income from higher income households to lower income households which is the reason why other groups did not see as much increase.