If the distribution of the gains from growth matters, growth in median income is:
A)a more informative measure of growth than growth in per capita income when the distribution of income is equitable.
B)a more informative measure of growth than growth in per capita income when the gains from growth are concentrated on a small segment of the population.
C)the same as growth in per capita income.
D)a less informative measure of growth than growth in per capita income.

Question

Quizplus · Accepted Answer

Growth in median income provides a more accurate picture of how the average person is benefiting from economic growth, especially when gains are not evenly distributed and are concentrated among a smaller segment of the population. This contrasts with per capita income, which can be skewed by very high incomes and may not reflect the economic experience of the median individual.

If the Distribution of the Gains from Growth Matters, Growth