Why Is Income Inequality Data Unreliable in Developing Countries

question 8

Multiple Choice

Why is income inequality data unreliable in developing countries?

• A) The relative lack of computers means that most forms of record keeping are impossible.
• B) Less developed countries have larger underground economies than developed ones.
• C) Poorly developed infrastructures mean that data systems within developing nations are not connected to outside economic agencies via the Internet.
• D) Almost all developing economies have tightly controlled borders,preventing international economic auditors from entering the country.
• E) The data maintained by the United Nations reflects only the 20 largest economies,as those are deemed most crucial to international stability.

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Definitions:

Premium Amortization

The gradual reduction of the premium paid above the par value of a bond, allocated over the bond's life.

Bond Amortization Schedule

A schedule that outlines the periodic reduction of the discount on bonds payable or the premium on bonds payable, along with the interest expense over the life of the bond.

Interest Paid

The amount paid over a period for borrowing funds or the cost incurred for the use of borrowed money.

Interest Expense

The cost incurred by an entity for borrowed funds, reflectively the interest payments due on any type of debt.