Which of the Following Best Describes the History of Income

question 22

Multiple Choice

Which of the following best describes the history of income inequality in the United States?

• A)The New Deal of the 1930s created massive income inequality that dramatically increased the share of annual national income going to the top 1 percent.
• B)Income inequality has remained relatively constant throughout American history,with the top 1 percent accounting for approximately 10 percent of national income.
• C)In 1976,the top 1 percent accounted for less than 10 percent of annual national income.
• D)The top 1 percent has never accounted for at least 10 percent of annual national income.

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Definitions:

Counterfeiting

The fraudulent manufacturing or creation of imitation products, currency, or documents with the intent to deceive.

IFRS

International Financial Reporting Standards, which are global accounting guidelines for preparing financial statements.

GAAP

Generally Accepted Accounting Principles, the standard framework of guidelines for financial accounting.

Principles-based

An approach focused on general guidelines, allowing for the exercise of professional judgment and flexibility in applying standards.