Which of the Following Statements About Income Distribution in the United

question 91

Multiple Choice

Which of the following statements about income distribution in the United States is NOT true?

• A) Over the past several decades, the rich have grown richer.
• B) Over the past several decades, the middle class has grown phenomenally.
• C) Over the past several decades, the poor have remained poor.
• D) The top 20 percent of earners capture over 50 percent of all income.
• E) The top five percent of American earners get nearly 22 percent of the country's adjusted gross income.

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Definitions:

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal annual amounts.

Estimated Useful Life

The expected time period during which an asset is useful to the owner and can contribute to revenue generation.

Revised Estimated

An updated projection or forecast, usually pertaining to budgeted or financial figures, based on new information or analyses since the original estimate was made.

Preproduction Costs

Preproduction costs are expenses incurred during the planning and design phase of manufacturing before actual production begins.