Why Might a Less Developed Country Have a Greater Degree

question 63

Multiple Choice

Why might a less developed country have a greater degree of income inequality?

• A) Greater income mobility in these nations creates large gaps in income,as individuals rapidly increase in their standard of living.
• B) Class systems always persist in less developed countries,where wealth is redistributed to the preferred class.
• C) Reduced access to advanced technology produces a more equitable distribution of income.
• D) Less developed nations often have widespread poverty,with wealth concentrated among only a few individuals.
• E) Less developed nations receive large amounts of foreign aid,which isn't taken into account with calculations of income inequality.

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Definitions:

Rate of Return

The outcome in terms of profit or loss on an investment over a designated period, presented as a percentage of the investment’s first cost.

Dividend

A part of a company’s profits given out to its shareholders, usually as cash or more shares.

ROE

Return on Equity; a measure of financial performance calculated by dividing net income by shareholder equity.

Dividend Growth Rate

The annualized percentage rate of growth of a company’s dividend payments.