AP U.S. History: Diagnostic 25. What led to the income shift shown in the image?
|AP||AP U.S. History|
|AP U.S. History||Exam|
|Science and Technology Transforms Society||Stagnation of Real Wages and Growing Economic Inequality|
|Test Prep||AP U.S. History|
|U.S. History||AP U.S. History|
And here are the potential answers.
[ mumbles ]
All right, well, let's start by getting a grip on the graph.
This is a distribution chart
of annual household incomes,
so each bar represents what percentage of the population
makes that level of income.
And we can see that it's heavily weighted to the left,
meaning that most Americans make much less than
the small group way down on the right end of the chart.
That trend is not so trendy.
Did this income shift to the left occur because of A -
a decrease in the number of publicly traded companies?
Huh. A decrease in the number of publicly traded companies? Huh?
With all those IPOs going around?
Uh, no, that would reflect a decline in income across
all brackets, probably, so that nixes A.
Could this shift have happened because of B -
increasing numbers of Americans graduating from college?
Well, actually, an increase in the number of college grads,
as well as growth in the information technology sector,
has caused some incomes to rise,
but only enough to sustain the median.
So that eliminates B and D.
Which means that the income shift to the left was the result of C -
a decline in manufacturing jobs and unions.
This decline eroded middle class wealth and caused
incomes to drop, so C is the right answer.
And because of this shift, the majority of the nation's
wealth is now concentrated in the so-called one percent,
who must be very happy.
[ sobbing ]
[ whirr ]