What Conclusion Can Be Reached from the Following Data on Income

question 14

Multiple Choice

What conclusion can be reached from the following data on income shares? $$\begin{array}{l}~~~~~~~~~~~~~~~~~~~~~~\text { Percent-age of Income Receivad by }\\\hline\begin{array} { l c c } & \text { Lowat 40\% } & \text { Highast 20\% } \\\hline \text { Bangladesh } & 17.3 & 45.3 \\\text { Indonesia } & 14.4 & 49.4\end{array}\end{array}$$

• A) absolute poverty is more widespread in Bangladesh
• B) the size distribution of income is more unequal in Indonesia
• C) Bangladesh had adopted a strategy of redistribution with growth
• D) growth in Bangladesh is calculated using poverty weights rather than income weights

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Definitions:

Owner's Equity

The residual interest in the assets of the enterprise after deducting liabilities, representing the capital owned by the proprietors.

Asset

An economic resource owned or controlled by a person or company, expected to provide future benefits.

Liability

A financial obligation or debt that an entity owes to another that must be paid in the future, such as loans, accounts payable, or mortgages.

Accounting Equation

The fundamental equation that represents the relationship between assets, liabilities, and owner's equity (Assets = Liabilities + Owner's Equity).