Asked by Angela Manabat on Jun 07, 2024
Verified
The following figures are income shares of the lowest quintiles in four societies. Which indicates the highest level of income inequality?
A) 5 percent
B) 4.5 percent
C) 4 percent
D) 3.5 percent
Income Shares
Refers to the division of total income among different groups or quartiles within a population, often used to assess economic inequality.
Income Inequality
Income inequality is the uneven distribution of income within a population, leading to disparities in wealth and living standards among different social and economic groups.
- Understand the contribution of taxes and government decisions to the variance in income equality.
Verified Answer
MM
Matthew MorenoJun 08, 2024
Final Answer :
D
Explanation :
The lowest income share (3.5 percent) indicates the highest level of income inequality, as it means the bottom quintile has the smallest portion of the total income compared to the other options.
Learning Objectives
- Understand the contribution of taxes and government decisions to the variance in income equality.
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