Understanding Wealth, Power, and Class in the United States

Which of the following statements best describes the relationship between wealth and power as discussed in the text?

• Wealth and power are always the same and should be considered together

• Wealth and power are not the same and should be kept analytically separate

• Only wealthy people can be powerful

• Power is irrelevant to social class

According to economists James O’Toole and Edward Lawler, how does the income of even moderately well-paid CEOs of large corporations compare to that of the average employee?

• They make about as much in a day as the average employee makes in a year.

• They make about as much in a week as the average employee makes in a year.

• They make about as much in a month as the average employee makes in a year.

• They make about as much in a year as the average employee makes in a month.

Between 1989 and 2007, by what percentage did the compensation for the average CEO grow?

• 167 percent

• 100 percent

• 50 percent

• 200 percent

Which of the following statements best describes the trend in executive income over the past several decades?

• Executive income has climbed considerably.

• Executive income has remained the same.

• Executive income has decreased.

• Executive income has fluctuated randomly.

Which group is described as the “celebrity rich” in the passage?

• Entertainers and professional athletes

• Corporate executives

• Political officials

• Business investors

What is a key reason that some people are able to enrich themselves after holding a prominent public position, according to the passage?

• Having a publicly recognizable name

• Winning the lottery

• Inheriting wealth

• Starting a business

If you were to analyze the earnings of celebrities mentioned in the passage, what additional source of income should you consider beyond salaries and endorsements?

• Business investments

• Lottery winnings

• Inheritance

• Government grants

According to the text, what is a key distinction of the rich from others regarding their income?

• They earn most of their income from their occupations.

• They earn most of their income from government support.

• They earn most of their income from their assets.

• They earn most of their income from part-time jobs.

Which of the following best indicates the division between the rich and the remainder of the population, according to the text?

• The value of their income

• The value of their assets

• The number of jobs they have

• The amount of taxes they pay

Why must entertainers and athletes continue to perform, according to the passage?

• To increase their popularity

• To maintain their flow of income

• To avoid paying taxes

• To invest in real estate