Why Is It That Economists Believe the Level of Inequality

question 24

Multiple Choice

Why is it that economists believe the level of inequality in less-developed countries is overstated?

• A) It doesn't take corruption into account.
• B) It doesn't take income from low-paying jobs into account.
• C) It doesn't take investments in human capital into account.
• D) It doesn't take goods and services produced within the home into account.
• E) It doesn't take discrimination into account.

---

Definitions:

Production

The process of creating, manufacturing, or producing goods and services.

Internal Customers

Individuals or departments within an organization that receive products or services from other parts of the company.

Employees of a Department

Individuals who work within a specific division or section of an organization, focusing on particular tasks or responsibilities.

Elton Mayo

A pioneering researcher in industrial and organizational psychology, known for conducting the Hawthorne Studies which highlighted the importance of social relations in the workplace.