Question:
Which of the following countries is most likely to have a high Gini Coefficient?
(1) A country with universal free health care and education
(2) A country experiencing positive economic growth with low level of unemployment
(3) A country with a progressive tax system and extensive redistribution policies.
(4) A country with bottom 10% of income earners hold 9% of the total income
(5) A country with a large informal sector and minimum social safety nets
Correct Answer:
(5)
Answer Explanation:
A high Gini coefficient indicates severe income inequality. Option 5 describes a highly unequal society with no welfare protections. (Conversely, options 1 and 3 actively reduce inequality, and option 4 describes near-perfect equality where 10% of the population holds almost exactly 10% of the wealth).
Topic: Inequality Year: 2024
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