Question

Between 1973 and 2000:

• A. 90% of Americans have seen relatively better income levels.
• B. 90% of Americans have seen their income transferred to the rich.
• C. 90% of Americans have seen their current value of income better than 1920s.
• D. 90% of Americans’ income has escalated more than the income of 0.001% Americans.

Hint:

In analyzing data, always pay attention to the specific percentages and comparisons made in the passage. Here, the increase of 7% for the bottom 90% is a key clue for the correct answer.

Answer 1

The Correct Option is A

Step 1: Understanding the passage.
According to the data provided, from 1973 to 2000, the average income of the bottom 90% of American taxpayers grew, albeit slightly.
Step 2: Analyzing the options.
- (a) 90% of Americans have seen relatively better income levels: This is correct as the passage states the average real income of the bottom 90% of taxpayers rose by 7%.
- (b) 90% of Americans have seen their income transferred to the rich: This is not mentioned in the passage. The passage does not say that income has been transferred to the rich.
- (c) 90% of Americans have seen their current value of income better than 1920s: This is incorrect. The passage highlights that income gaps have increased and the income distribution is similar to the 1920s.
- (d) 90% of Americans’ income has escalated more than the income of 0.001% Americans: This is incorrect as the passage does not state that the bottom 90% have outpaced the top earners.
Step 3: Conclusion.
The correct answer is (a), as the passage confirms that the average real income of the bottom 90% of taxpayers increased by 7% between 1973 and 2000.