Which of the Following Statements Is True Concerning Income Inequality

question 89

Multiple Choice

Which of the following statements is true concerning income inequality?

• A)Income is equally distributed in poor countries.
• B)Developed countries have greater income inequality than developing countries.
• C)The government has no way to alter income inequality.
• D)The free market produces an unequal distribution of income.

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Definitions:

Compounded Annually

A method of calculating interest where the interest earned over a year is added to the principal, and the sum becomes the principal for the next year.

Future Value

The value of an investment or loan at a specific date in the future, calculated using the current value and the expected rate of growth or interest.

Future Value

Future Value is the estimated amount of money that an investment will grow to over a specified period of time, assuming a certain rate of interest or rate of return.

Compounded Semiannually

Refers to the process of earning interest on both the initial principal and the accumulated interest from previous periods, calculated twice a year.