What Does the Pareto Principle State

question 25

Multiple Choice

What does the Pareto principle state?

• A) A small proportion of effort, people or time (20 per cent) accounts for an equally small proportion of the results (<20 per cent).
• B) A small proportion of effort, people or time (20 per cent) accounts for a large proportion of the results (80 per cent).
• C) A large proportion of effort, people or time (80 per cent) accounts for an equally large proportion of the results (>80 per cent).
• D) A moderate proportion of effort, people or time (35 per cent) accounts for a large proportion of the results (80 per cent).
• E) A small proportion of effort, people or time (20 per cent) accounts for a moderate proportion of the results (35 per cent).

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Definitions:

Family Wealth

The total value of all financial and non-financial assets owned by members of a family unit, minus any debts.

Wealth Increase

The growth in the value of an individual's or entity's assets and financial resources, leading to an improvement in their financial condition and potential standard of living.

Absolute Poverty

A condition where individuals lack the basic means of survival, such as food, clean water, and shelter.

Relative Poverty

A condition where individuals lack the minimum amount of income needed in comparison to the average standard of living in their society.