Which of the Following Is True About Income Inequality

question 63

Multiple Choice

Which of the following is true about income inequality?

• A)Inequality tends to be greatest in the poorest countries.
• B)Inequality is not an issue for developed countries.
• C)Inequality tends to get worse as a country develops.
• D)Inequality tends to diminish as the population increases.

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Definitions:

Perfect Competitors

Market participants in a perfectly competitive market where no single buyer or seller has the power to influence prices.

Short Run

A period in economics during which some factors of production or inputs are fixed in quantity and cannot be changed.

Industry

A distinct group of productive or service businesses that share similar characteristics, processes, or goods.

Perfect Competitor

A theoretical firm in a perfectly competitive market where no single buyer or seller has the market power to influence prices.