Recall the Application About the Relationship Between Economic Growth and Income

question 141

Multiple Choice

Recall the Application about the relationship between economic growth and income inequality to answer
the following question(s) . In the United States, inequality-as measured by the income share of the top 10
percent of families-increased from 40 percent at the beginning of the 1920s to 45 percent through the end
of the Great Depression. The share fell to 32 percent by 1944 and did not begin to increase again until the
early 1970s.
-According to this Application, based on the inequality measurements for the United States from the 1920s to the 1970s, inequality

• A)does not naturally accompany economic development.
• B)is unrelated to a nationʹs tax system.
• C)is dependent on a nationʹs growth rate.
• D)decreases as a country develops.

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Definitions:

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