Which of the Following Best Explains the Relationship Between Wealth

question 79

Multiple Choice

Which of the following best explains the relationship between wealth and income?

• A) Although income is influenced by race, education, and age, wealth is independent of these variables.
• B) Wealthy people almost always inherit their money; thus, there is no relationship between wealth and income.
• C) The same factors that limit people's incomes also limit their ability to accumulate wealth.
• D) Income disparities between rich and poor have increased in the past three decades, whereas wealth disparities have decreased during the same time.
• E) Education has a strong connection to income but a weak relationship to wealth.

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Definitions:

Labor Force

The total number of people who are actively employed or seeking employment within an economy.

Sweden

A Scandinavian country in Northern Europe, known for its rich history, advanced social welfare system, and natural beauty.

Money Management

The practice of budgeting, saving, investing, spending, or otherwise overseeing the capital usage of an individual or group.

Dual-income Families

Households in which both partners earn an income, typically through employment outside the home.