Which of the following best explains the relationship between wealth and income?
A) Although income is influenced by race, education, and age, wealth is independent of these variables.
B) Wealthy people almost always inherit their money; thus, there is no relationship between wealth and income.
C) The same factors that limit people's incomes also limit their ability to accumulate wealth.
D) Income inequality has increased in the past three decades, whereas wealth inequality has decreased.

Question

Quizplus · Accepted Answer

Income and wealth are related in that the ability to accumulate wealth is heavily influenced by factors such as race, education, and age, which also affect income. For example, discrimination in employment and education can limit both income and wealth accumulation. Additionally, high levels of debt and lack of access to financial resources can also hinder wealth accumulation, even if a person has a relatively high income. Therefore, the same factors that limit people's incomes also limit their ability to accumulate wealth.

Which of the Following Best Explains the Relationship Between Wealth