Identify the correct statement about the distribution of income in the United St
ID: 1116124 • Letter: I
Question
Identify the correct statement about the distribution of income in the United States in the last two decades. a. The share of income is the highest fifth quantile has increased in the last two decades because of an increase in the number of double-income households b. The share of income of the lowest fifth quantile has increased in the last two decades because of an increase in the number of double -income households. c. The share of income of the highest fifth quantile has decreased in the last two decades because of an increase in the number of single-parent households. d. The share of income of the lowest fifth quantile has decreased in the last two decades because of a decrease in in-kind transfers
Explanation / Answer
The correct statement is (a) The share of income is the highest fifth quantile has increased in the last two decades because of an increase in the number of double-income households.
This is because in last two decaded the concentration of wealth in the top 5 quantile has increased due to various reasons like increse in higher income households, better opportunities, etc.