Which of the Following Was True Regarding Conventionally Measured Income

question 39

Multiple Choice

Which of the following was true regarding conventionally measured income inequality in the U.S. during 1968 to 2007?

• A)The income share of the top 1% of income earners tripled over this period.
• B)The income share of the top 25% of income earners remained below 60% during 1968-2007.
• C)There was a steady decline in the income share of the top 5% of income earners during this period.
• D)The conventional measure of income inequality showed that it was significantly low during this period compared to any other time period.

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Definitions:

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal annual amounts.

Net Income Attributable

The portion of net income (profit) that is available to the shareholders, after accounting for dividends to preferred stockholders and other adjustments.

Noncontrolling Interest

A stake in a company that is less than 50%, implying that the holder does not have control over the company's operations.

Equity Method

The equity method is an accounting technique used to record investments in associate companies where the investor has significant influence but does not control the company outright, typically identified by owning 20-50% of the voting stock.