Question

Which statement is true about incomes in the United States? (LO8, 9) a) Almost everyone earns about the same income. b) Almost everyone is either very rich or very poor. c) There is a wide disparity in income. d) None of these statements is true.

Short answer

The correct statement is c) There is a wide disparity in income.

Step-by-step solution

Analyzing the answer choices

Before we can determine which statement is true, we need to carefully analyze the provided options: a) Almost everyone earns about the same income. b) Almost everyone is either very rich or very poor. c) There is a wide disparity in income. d) None of these statements is true. We will compare these choices to the reality of income distribution in the United States, in order to identify which statement is true.

Comparing the choices to income distribution in the U.S.

In this step, we will compare each answer choice to the income distribution in the United States. - Choice a) suggests that income is somewhat evenly distributed in the country. This is not the case, as the U.S. is known for its significant income inequality. - Choice b) proposes that the majority of people are either very rich or very poor. This statement exaggerates the situation somewhat, as there is still a wide range of incomes within the middle class. - Choice c) states that there is a wide disparity in income. This statement is accurate, as many studies and reports have shown that the U.S. exhibits considerable income inequality. - Choice d) claims that none of these statements are true. Since choice c) accurately describes the income distribution in the United States, this option is not correct.

Choose the correct statement

After comparing the given statements to the actual income distribution in the United States, we can conclude that choice c) "There is a wide disparity in income." is the correct answer, as it accurately describes the significant income inequality present in the country.