Which of the following would most likely increase income inequality?

Question

Quizplus · Accepted Answer

If product sellers have greater monopoly power, they can charge higher prices for their products, leading to higher profits and potentially higher income for those at the top of the company. This would increase income inequality.

Option A would likely decrease income inequality by providing better education opportunities to more people. Option C would increase equality in the distribution of wealth, by definition. Option D would decrease income inequality by reducing the differences in earnings across occupations.

Which of the Following Would Most Likely Increase Income Inequality