Which of the Following Statements Most Accurately Describes the Pattern

question 16

Multiple Choice

Which of the following statements most accurately describes the pattern of income distribution within Third World and First World nations?

• A) Income is almost always more concentrated within First World countries than within Third World countries.
• B) Income is actually more evenly distributed within Third World countries.
• C) The richer a country is, the more its national income tends to be concentrated.
• D) Income is quite unequally distributed within a number of countries in both the First World and Third World.
• E) Income distribution is almost always more concentrated within the poorest countries.

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Definitions:

Call Option

A financial contract giving the buyer the right, but not the obligation, to buy a stock, bond, commodity, or other asset at a specified price within a fixed time period.

Market Value

The existing buying or selling price of a service or asset in a trading environment.

Warrant

A financial instrument that gives the holder the right, but not the obligation, to buy a company's stock at a specified price before a certain date.

Convertible Bond

An investment vehicle that permits conversion into a fixed number of the issuing company's equity shares at select moments over its lifespan, usually upon the decision of the person owning the bond.