The World Bank Classifies Nations as Low Income,lower Middle Income,upper

question 45

Multiple Choice

The World Bank classifies nations as low income,lower middle income,upper middle income,or high income based on gross national income (GNI) that reflects the average annual per-person income in those nations.Why might sociologists find this form of classification problematic?

• A) The number is an average of incomes in a country,and it can mask inequality within a specific nation.
• B) Making cross-national comparisons of income ignores the role of culture in making some groups used to poverty.
• C) Too many people lie about their incomes to make the number useful.
• D) Global economic comparisons need to take into account the mode of production in every given nation.

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Definitions:

Transaction Explanation

A description or rationale provided for each transaction within an accounting system, aiding in understanding and verifying the nature of the transaction.

Income Statement

Also known as profit and loss statement, it details a company’s financial performance, including sales, expenses, and profits over a period.

Owner's Equity Statement

An owner's equity statement is a financial document that shows changes in the equity of a company's owners over a period.

Owner's Capital

The amount of equity a business owner has in the company, representing their investment plus any retained earnings or losses.