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:

Exposure Draft

A document issued by regulatory or standard-setting bodies to invite public comment on a proposed new standard or amendment to existing standards before finalization.

Revenue Recognition

Accounting principle determining when revenue should be recorded in the financial statements, typically at the time goods or services are provided.

Book Value

The net value of a company's assets found on its balance sheet, calculated as total assets minus intangible assets and liabilities.

Carrying Amount

The value at which an asset or liability is recorded on the balance sheet, including depreciation or amortization.