How Does Politics Matter for the Level of Inequality in the United

question 48

Multiple Choice

How does politics matter for the level of inequality in the United States?

• A) The U.S. political system is fragmented, making it difficult to establish a comprehensive safety net.
• B) The welfare state in the United States is more developed than in European countries.
• C) Capitalist institutions make it possible to maintain low levels of inequality.
• D) The lack of a feudal history makes inequality less of an issue in the United States.

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Definitions:

Cumulative Dividend

A feature of preferred stock that mandates the payment of any missed dividends before dividends can be distributed to other shareholders.

Arrearage

A legal term for the part of a debt that is overdue after missing one or more required payments.

Preferred Shareholders

Investors who own preferred shares in a company, giving them priority over common shareholders in the distribution of dividends and assets.

Dividend Distributions

Payments made by a corporation to its shareholders, usually derived from the company's earnings.