Suppose the median household income in Alaska is nearly double that in Mississippi. Which is a likely outcome of this wealth disparity?

Question

Quizplus · Accepted Answer

With a wealth disparity this large, it is likely that the more affluent state (Alaska) will have better-funded welfare entitlement programs than the less affluent state (Mississippi). This would help address some of the economic inequities caused by the income gap. However, the other options are less likely. Lower taxes in Alaska would not necessarily be a direct result of the income gap, and Mississippi may not necessarily increase their minimum wage or receive lower taxes to compensate for the disparity.

Suppose the Median Household Income in Alaska Is Nearly Double