Distribution of income in United States.
Explanation of Solution
Income inequality is the unequal distribution of income or wages across various participants in an economy. During 2014, the families of lowest fifth category earned about 3.6 percent of income share. The highest fifth families earned 48.9, which is more than 14 times of that lowest fifth. While considering the income share after tax and in-kind government transfer benefits, the highest fifth category earned about 7.4 times of the lowest fifth category. That means, the inequality in the income reduced. The difference in income may occurs when there is difference in education, skill, talent and so on, which cannot be considered as unfair distribution of income. On the other hand, difference in wage,
Income inequality: Income inequality can be defined as the unequal distribution of income or wages across various participants in an economy.
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Chapter 15 Solutions
Microeconomics: Private and Public Choice (MindTap Course List)
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