A wealth gap is best described as an economic difference between which of the following?

• A. Nations
• B. Governments
• C. Economic classes
• D. Businesses

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the concept of a wealth gap. In microeconomics, a wealth gap refers to the disparity in the distribution of assets and income among different groups within an economy.
2. Step 2: Identify the groups between which the wealth gap is measured. It is typically between economic classes, such as the rich and the poor, or different income groups within a society.
3. Step 3: Consider the other options: Nations, Governments, and Businesses. While wealth differences can exist between these entities, the term 'wealth gap' specifically refers to differences within a society, not between countries or organizations.
4. Step 4: Conclude that the wealth gap is best described as the economic difference between economic classes, as it highlights inequality within a population based on wealth and income.
5. Step 5: Summarize that the wealth gap measures how wealth is unevenly distributed among individuals or groups categorized by their economic status, which is why 'economic classes' is the correct answer.