Which of the following contributed to the increase in income inequality since the end of 1960?
A) The Gini index was developed to measure income inequality.
B) The legal minimum wage has been allowed to fall as inflation reduces its value.
C) The official poverty line has not been adjusted for inflation.
D) Federal, state, and local governments operate programs to assist people in need.

Question

Quizplus · Accepted Answer

B) The legal minimum wage not keeping pace with inflation means that the real income of those at the bottom of the income distribution has not increased as much as inflation, contributing to greater income inequality.

Which of the Following Contributed to the Increase in Income