Which Theory Has Been Suggested to Explain the Rise in Income

question 37

Multiple Choice

Which theory has been suggested to explain the rise in income inequality in the United States?

• A) The decline of the manufacturing sector
• B) A rise in the number of two wage families
• C) Unskilled labor overseas
• D) All of the above are true.

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Definitions:

Equipment

Tangible personal property used in operations, which may be considered a business asset and subject to depreciation for tax purposes.

Partnership Interest

An ownership stake in a partnership, representing a partner's share of the profits, losses, and capital.

Additional Contributions

Extra payments beyond the minimum required, often referring to retirement accounts or other savings plans.

Cash Distribution

The payment of earnings or assets from a corporation or a financial entity to its shareholders, investors, or partners.