Asked by
Salsabila nur Alifia
on Dec 12, 2024
Verified
Which of the following contributed to the increase in income inequality among families in the United States during the 1980s and 1990s?
A) An increase in the highest marginal tax rates that forced high income earners to work more in order to maintain their income.
B) An increase in the proportion of both single-parent and dual-earner families.
C) A decrease in the size of the earnings differential between college graduates and high school graduates.
D) All of the above.
Marginal Tax Rates
The rate of tax applied to the next dollar of taxable income, which increases as income rises within progressive tax systems.
Dual-Earner Families
Dual-earner families are those where both partners in a household engage in paid employment.
Earnings Differential
The difference in wages or income between two groups due to various factors such as education, experience, or gender.
- Understand the factors contributing to income inequality.
Verified Answer
ML
Learning Objectives
- Understand the factors contributing to income inequality.