-A Choropleth Map Such as the Map of "Income Spent

question 97

Multiple Choice

-A choropleth map such as the map of "Income Spent on Food" might conceal details such as which of the following?

• A) Even in developed countries where the average person spends less than 20 percent of their income on food, inequalities of income may be great enough for many people to remain undernourished.
• B) In developed countries where the average person spends less than 20 percent of their income on food, the average upper-class person may spend more than 40 percent of their income on food.
• C) Even in developed countries where the average person spends less than 20 percent of their income on food, less food is available than in developing countries.
• D) Even in developing countries where the average person spends more than 40 percent of their income on food, wealthy people must also spend more than 40 percent of their income on food.
• E) In developed countries where the average person spends more than 40 percent of their income on food, other prices are so low that undernourishment is hardly ever a problem.

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Definitions:

Residual Income Claimants

Individuals or entities entitled to the income that remains after all other expenses and obligations have been met, typically referring to owners or shareholders.

Operational Efficiency

The ability of an organization to minimize inputs and costs while maximizing outputs and services.

Market Rate

The prevailing price or interest rate for goods, services, or securities in a competitive market.

Principal-Agent Problem

A dilemma in which an agent (employee or representative) may not act in the best interest of the principal (employer or client) due to differing objectives and information asymmetry.