Which Statement Most Accurately Describes the Distribution of Income Among

question 13

Multiple Choice

Which statement most accurately describes the distribution of income among US families?

• A) In 2005, as in most of American history, poor people work on average many more hours than do high-income people.
• B) The median real family income has remained about the same since 1970.
• C) One of the most significant determinants of income inequality in the US has been the increase in demand for highly trained labor.
• D) Earnings of married-couple families have grown more slowly than earnings of both male and female households with no spouse.

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Definitions:

Market Price

Market price is the current price at which an asset or service can be bought or sold in an open and competitive market.

Book Value

The net value of a company's assets minus its liabilities, as recorded on its balance sheet.

Dividend Market Equilibrium

A state in the stock market where the supply of stocks a company is willing to sell at a certain dividend yield equals the demand.

Low Dividend Policy

A strategy where a company decides to distribute a smaller portion of its earnings in the form of dividends to retain more capital for growth.