Question:
The table below shows the income shares by quintiles of income receivers in a country in 2010 and 2020… According to the table it may be concluded that over the ten-year period
(1) there has been an improvement in resource allocation in the country.
(2) the distribution of income became more unequal.
(3) the distribution of wealth became more unequal.
(4) the economic condition of low income receivers has improved.
(5) there has been a decline in the productivity of low income receivers.
Correct Answer:
(2)
Answer Explanation:
If the share of total national income going to the lowest quintiles (poorest 20%) decreased while the share going to the highest quintile (richest 20%) increased over the decade, it signifies a widening gap between the rich and poor, making income distribution more unequal.
Topic: Income Inequality Year: 2021
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