Which of the following groups has the lowest ownership of wealth in the United States?

• A. Retired households
• B. Middle-income households
• C. The top 1% of households by income
• D. The bottom 20% of households by income

Answer: (D)

Verified step by step guidance

1. Understand the concept of wealth ownership: Wealth refers to the total value of assets owned by a household minus any debts. It includes savings, property, stocks, and other valuable possessions.
2. Recognize the typical distribution of wealth in the United States: Wealth is usually concentrated among the top income groups, while lower-income groups tend to have less accumulated wealth.
3. Analyze each group: Retired households often have accumulated wealth through savings and home ownership; middle-income households have moderate wealth; the top 1% of households by income typically hold a large share of total wealth.
4. Consider the bottom 20% of households by income: This group generally has the lowest income and limited ability to save or invest, resulting in the lowest ownership of wealth.
5. Conclude that the bottom 20% of households by income have the lowest ownership of wealth based on the typical patterns of wealth distribution in the U.S.