Suppose that a society contains only two members, a lawyer named Monique and a handyman named James.

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Suppose that a society contains only two members, a lawyer named Monique and a handyman named James. Five years ago, Monique made $100,000 while James made $50,000. This year, Monique will make $300,000 while James will make $100,000. Which of the following statements about this society’s income distribution are true?

Select one or more answers from the choices shown.

a. In absolute dollar amounts, the entire distribution of income has been moving upward.

b. In absolute dollar amounts, the entire distribution of income has been stagnant.

c. The relative distribution of income has become more equal.

d. The relative distribution of income has become less equal.

e. The relative distribution of income has remained constant.

f. The rich are getting richer while the poor are getting poorer.

g. The rich are getting richer faster than the poor are getting richer. 

Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
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Microeconomics Principles, Problems and Policies

ISBN: 978-1259450242

20th edition

Authors: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn

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