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Which of the following is a cause of unequal income distribution in the United...

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skyler89 | Student, College Sophomore | (Level 2) Honors

Posted October 24, 2012 at 3:34 PM via web

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Which of the following is a cause of unequal income distribution in the United States?

Out of these four which is one cause of unequal income distribution in the United States?

an equitable distribution of wealth and property

differences in education and training

the high levels of noncash transfers

the low benefit-reduction rate

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pohnpei397 | College Teacher | (Level 3) Distinguished Educator

Posted October 24, 2012 at 3:50 PM (Answer #1)

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Of the four choices that you have given here, the second is the best answer to this question.

In a market economy like that of the United States, people are generally paid according to their value to a company.  People with more education and more training tend to be more valuable.  For example, a doctor is more valuable in terms of being able to make money for a firm than someone working as a cook at McDonald’s. 

In the United States, there are great differences in education levels.  These differences help to explain the unequal distribution of income.

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