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 disparities between rich and poor have increased in the past three decades, whereas wealth disparities have decreased during the same time.
E) Education has a strong connection to income but a weak relationship to wealth.

Question

Quizplus · Accepted Answer

Wealth and income are related in that people's ability to accumulate wealth is often limited by the same factors that limit their income. These factors may include race, education, age, and access to financial resources. While inheritance can play a role in wealth accumulation, it is not the only factor. It is also worth noting that income disparities have increased in recent decades, while wealth disparities have decreased, suggesting that the relationship between the two is complex and multifaceted. Education can be important in both income and wealth accumulation, but the relationship may be stronger for income than for wealth.

Which of the Following Best Explains the Relationship Between Wealth