Hanson is a college student who is surprised to see growing inequality within U.S. society. He had made a different prediction, based on the Kuznets curve. Hanson expected to see, over time, inequality:
A) decrease at first, stabilize, and then decrease again
B) increase at first, decline, and then stabilize at a relatively low level
C) decrease at first, increase rapidly, and then stabilize at a relatively high level
D) increase at first, stabilize at a high level, and then decline gradually

Question

Quizplus · Accepted Answer

The Kuznets curve hypothesizes that as an economy develops, market forces first increase and then decrease economic inequality. This suggests that inequality would increase in the early stages of economic development, decline as a country becomes more economically advanced, and then stabilize at a lower level.

Hanson Is a College Student Who Is Surprised to See