The Percentage of the World Population with an Income Less

question 57

Multiple Choice

The percentage of the world population with an income less than $5,000 is approximately

• A)45 percent.
• B)90 percent.
• C)10 percent.
• D)2 percent.
• E)20 percent.

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Definitions:

Initial Endowment

The initial set of assets, goods, or resources that individuals or entities possess before entering into any economic transactions or exchanges.

Pareto Optimal Allocation

An economic state where resources are allocated in such a way that it is impossible to make any individual better off without making at least one individual worse off.

Utility Function

A mathematical representation of how a series of choices align with an individual's preferences, used in economics to model satisfaction or happiness.

Initial Endowment

The initial set of assets, goods, or resources that an individual or entity possesses prior to participation in an economic exchange or process.