According to the U.S. Census Bureau, income inequality in the United States was "significantly higher" in 2018 than in 2017, with the gap between the richest and poorest households the largest it has been in the last 50 years. At the same time, median U.S. income hit its highest level ever, with a national economy experiencing low unemployment and more than 10 years of consecutive GDP growth. According to Rutgers University Professor William M. Rogers III, the most troubling aspect of this report is that it "clearly illustrates the inability of the current economic expansion, the longest on record, to lessen inequality." The Census Bureau report also states that the nation's poverty rate fell in 14 states and Puerto Rico, and that for the 25 largest U.S. cities, the poverty rate either remained the same or fell in 2018. Source: Bill Chappell, "U.S. Income Inequality Worsens, Widening To A New Gap", NPR, September 26, 2019. Refer to the Article Summary. The article discusses income inequality and how economic growth alone has not resulted in a more equitable distribution of income. Would an equitable distribution of income necessarily be the most efficient distribution of income? O No, an economically efficient distribution of income would not necessarily be equitable. O Yes, equitable and efficient are two different words which have the same definition. No, it is impossible to have an economically efficient distribution which is also an equitable distribution. Yes, in order for the distribution to be equitable, it must also be efficient.
According to the U.S. Census Bureau, income inequality in the United States was "significantly higher" in 2018 than in 2017, with the gap between the richest and poorest households the largest it has been in the last 50 years. At the same time, median U.S. income hit its highest level ever, with a national economy experiencing low unemployment and more than 10 years of consecutive GDP growth. According to Rutgers University Professor William M. Rogers III, the most troubling aspect of this report is that it "clearly illustrates the inability of the current economic expansion, the longest on record, to lessen inequality." The Census Bureau report also states that the nation's poverty rate fell in 14 states and Puerto Rico, and that for the 25 largest U.S. cities, the poverty rate either remained the same or fell in 2018. Source: Bill Chappell, "U.S. Income Inequality Worsens, Widening To A New Gap", NPR, September 26, 2019. Refer to the Article Summary. The article discusses income inequality and how economic growth alone has not resulted in a more equitable distribution of income. Would an equitable distribution of income necessarily be the most efficient distribution of income? O No, an economically efficient distribution of income would not necessarily be equitable. O Yes, equitable and efficient are two different words which have the same definition. No, it is impossible to have an economically efficient distribution which is also an equitable distribution. Yes, in order for the distribution to be equitable, it must also be efficient.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Article Summary
According to the U.S. Census Bureau, income inequality in the United States was "significantly
higher" in 2018 than in 2017, with the gap between the richest and poorest households the largest
it has been in the last 50 years. At the same time, median U.S. income hit its highest level ever, with
a national economy experiencing low unemployment and more than 10 years of consecutive GDP
growth. According to Rutgers University Professor William M. Rogers III, the most troubling aspect
of this report is that it "clearly illustrates the inability of the current economic expansion, the
longest on record, to lessen inequality." The Census Bureau report also states that the nation's
poverty rate fell in 14 states and Puerto Rico, and that for the 25 largest U.S. cities, the poverty
rate either remained the same or fell in 2018.
Source: Bill Chappell, "U.S. Income Inequality Worsens, Widening To A New Gap", NPR, September
26, 2019.
Refer to the Article Summary. The article discusses income inequality and how economic growth alone
has not resulted in a more equitable distribution of income. Would an equitable distribution of
income necessarily be the most efficient distribution of income?
O No, an economically efficient distribution of income would not necessarily be equitable.
Yes, equitable and efficient are two different words which have the same definition.
No, it is impossible to have an economically efficient distribution which is also an equitable distribution.
O Yes, in order for the distribution to be equitable, it must also be efficient.
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