When China Embarked on Market Changes Towards Urbanization and Manufacturing

question 337

Multiple Choice

When China embarked on market changes towards urbanization and manufacturing in 1978, urban disposable incomes were 2.6 times greater than rural net income. By 2008 they were 3.3 times bigger. These market changes have led to

• A) increased income inequality between rural and urban populations.
• B) a decreased Gini ratio.
• C) the Lorenz curve for income to move closer to the line of equality.
• D) a movement towards a bell-shaped distribution of income.

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