Question

Table 38 Income Range Percentage of Households, 2011 Percentage of Households, 2012 Less than $10,000 7.2% 7.6% $10,000 to $14,999 5.5% 5.8% $15,000 to $24,999 10.6% 11.1% $25,000 to $34,999 10.6% 11.0% $35,000 to $49,999 14.2% 14.6% $50,000 to $74,999 18.8% 18.8% $75,000 to $99,999 12.5% 12.1% $100,000 to $149,999 12.2% 11.4% $150,000 to $199,999 4.3% 3.9% $200,000 or more 4.2% 3.7% Refer to Table 38.

A person who is concerned that income inequality has improved between 2011 and 2012 would cite which of the following statistics to support her position? Group of answer choices

The percentage of people earning less than $25,000 decreased from 2011 to 2012.

The percentage of people earning more than $100,000 increased from 2011 to 2012.

The percentage of people earning between $50,000 and $100,000 stayed virtually constant from 2011 to 2012.

The percentage of people earning more than $150,000 decreased from 2011 to 2012. Flag this Question Question 22

Answer 1

The correct answer is that the percentage of households earning more than $150,000 decreased from 2011 to 2012. This is because this decline implies that people earning extraordinary income have reduced in the economy pointing towards lesser income inequality.

The other options are incorrect because option b would imply that income inequality has risen because the income slot given signifies extraordinary incomes. Other options are also not srrongly supporting the arguement of decline in income inequality.

On the other hand, the decline in proportion of super rich in the economy definity signifies improvement in income inequality.