Question:1 During the _________, real incomes nearly doubled in every income category.

Multiple Choice

• 1920s
• post-World War II period
• 1970s
• 1990s
• globalization period

2 Between the 1950s and 1970s, what prevented widening income inequality?

Multiple Choice

• The decline in union membership
• The creation of supply-side economic policies
• A reduction in the capital gains tax
• A high marginal tax rate on upper incomes
• The rise of global competition to U.S. businesses

3 Supply-side economic theory is based on the assumption that

Multiple Choice

• a high marginal tax rate on upper incomes is necessary.
• government investment in social welfare policies reduces poverty.
• tax cuts for businesses and high-income earners stimulates economic growth.
• government should promote unions in order to reduce income inequality.
• lowering the minimum wage reduces wage stagnation.

4 What advantage do middle- and lower-income Americans have in the political system?

Multiple Choice

• Corporate influence with Congress
• Both political parties are dedicated to representing their economic needs
• They provide most of the campaign contributions to members of Congress
• Most lobbyists represent lower- and middle-income groups
• Voting power