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A country's total real income rises but the median income of citizens falls. What does this indicate?

Answer and explanation

Correct answer: Income growth may be concentrated among top-income groups

The governing concept is that aggregate income and its distribution are different dimensions of economic welfare. If total real income increases while median income falls, the gains are likely concentrated among higher-income households, while the typical citizen becomes worse off. Therefore, option B is correct. Option A is too absolute; options C and D do not follow from the information given.

Related tags

Median-IncomeIncome-DistributionEconomic-WelfareGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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