Which statement about income distribution in the United States is accurate, based on this figure? Distribution of Income in the United States, 1967-2015
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A) Income inequality has been increasing since 1967.
B) The share of income earned by the top 5 percent began increasing after the 2008 recession.
C) The lowest 20 percent of the population receives close to 20 percent of total income.
D) The middle income group has nearly disappeared, with nearly all income distributed at the top and bottom.

Question

Quizplus · Accepted Answer

The figure shows that income inequality has been increasing since 1967. The share of income earned by the top 5 percent has been steadily increasing, while the bottom 20 percent has been receiving a decreasing share of income. The middle class has also seen a decline in their share of income, indicating a widening income gap between the rich and poor. Option B is incorrect as the trend of increasing income share of top 5 percent started before the 2008 recession. Option C is also incorrect as the lowest 20 percent of the population receives less than 5 percent of total income. Option D is incorrect as while the middle class share of income has decreased, they still receive a significant percentage of total income.

Which Statement About Income Distribution in the United States Is