Why Might a Less Developed Country Have a Greater Degree

question 63

Multiple Choice

Why might a less developed country have a greater degree of income inequality?

• A) Greater income mobility in these nations creates large gaps in income,as individuals rapidly increase in their standard of living.
• B) Class systems always persist in less developed countries,where wealth is redistributed to the preferred class.
• C) Reduced access to advanced technology produces a more equitable distribution of income.
• D) Less developed nations often have widespread poverty,with wealth concentrated among only a few individuals.
• E) Less developed nations receive large amounts of foreign aid,which isn't taken into account with calculations of income inequality.

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Definitions:

Actual Hours

The real number of hours worked, as opposed to planned or estimated hours.

Overhead Controllable Variance

The difference between the actual overhead incurred and the overhead that should have been incurred, based on controllable factors.

Budgeted Overhead

The estimated cost of all indirect production expenses for a specific period as part of the budgeting process.

Standard Hours Allowed

The amount of time that should be spent to produce a certain amount of goods or services, according to predetermined standards.