1 Economic Inequality in the United States 1) Market income is A) profit earned in factor markets. B) interest earned in factor markets. C) wages, interest, rent, and profit earned in factor markets. D) wages, interest, rent, and profit earned in factor markets plus cash payments made to households by government. 2) Market income is A) wage, interest, rent, and profit earned in factor markets. B) wage income. C) wage and salary income. D) money income. 3) Money income is A) market income plus cash payments from government. B) equal to market income. C) market income plus cash payments from government minus taxes. D) market income minus taxes. 4) The mode household income is A) the income that separates households into two equal groups. B) the most common household income. C) the mean household income. D) the average household income. 5) Mode income is A) the most common income. B) the average income. C) the middle income level. D) the same as money income. 6) The median household income is A) the income that separates households into two equal groups. B) the most common household income. C) the mean household income. D) the average household income. 7) The mean household income is A) the income that separates households into two equal groups. B) the most common household income. C) the percentage of total income received by the richest 20 percent of households. D) the average household income. 8) In the United States A) there are more households with incomes below the mean income than above the mean income. B) there are more households with incomes above the mean income than below the mean income. C) the mode income equals the mean income. D) the income distribution is bell shaped. 9) In the United States, the median household income is ________ than the mean income, which means there are ________ households with low incomes than with high incomes. A) less; more B) greater; more C) greater; fewer D) less; fewer 10) The distribution of income in the United States is characterized by the following relationship between the mean, median, and mode incomes: A) mean income < median income < mode income. B) mode income < median income < mean income. C) median income < mean income < mode income. D) mode income < mean income < median income.