Learn Before
  • Rising Within-Country Income Inequality in Recent Decades

Comparative Analysis of National Income Distribution

Consider the following economic data for two hypothetical countries. Your task is to calculate the rich/poor income ratio for each country and determine which one exhibits greater income inequality. Explain your reasoning based on your calculations.

0

1

a month ago

Contributors are:

Who are from:

Tags

Social Science

Empirical Science

Science

Economy

Ch.1 The Capitalist Revolution - The Economy 1.0 @ CORE Econ

The Economy 1.0 @ CORE Econ

CORE Econ

Economics

Introduction to Microeconomics Course

Ch.1 Prosperity, inequality, and planetary limits - The Economy 2.0 Microeconomics @ CORE Econ

Analysis in Bloom's Taxonomy

The Economy 2.0 Microeconomics @ CORE Econ

Cognitive Psychology

Psychology

Related
  • Income distribution in Singapore and Liberia

  • India's Progress in Living Standards and Persistent Poverty (14th Century to Present)

  • The 90/10 Ratio

  • Latin American Growth

  • China's Economic Decline

  • World Income Distribution in 2020 (Figure 1.5, Bottom Panel)

  • The Black Death: Spread and Demographic Impact in 14th Century Eurasia

  • Comparative Analysis of National Income Distribution

  • Country A has a high average income per person and a rich/poor ratio of 18. Country B has a moderate average income per person and a rich/poor ratio of 5. The rich/poor ratio is calculated by dividing the average income of the wealthiest 10% of the population by the average income of the poorest 10%. Based solely on this information, which statement is the most accurate conclusion?

  • Interpreting Income Inequality Ratios

  • Evaluating a Measure of Income Disparity

  • Evaluating Income Distribution in a Hypothetical Nation

  • Analyzing Claims about National Prosperity

  • A country's high average income is a reliable indicator that it also has low income inequality (a small gap between the average income of the richest 10% and the poorest 10%).

  • Consider a country where the gap between the rich and poor is measured by dividing the average income of the wealthiest 10% of the population by the average income of the poorest 10%. If a new government policy successfully doubles the average income of the poorest 10%, it is certain that this measure of inequality will be cut in half.

  • Country Alpha and Country Beta both have a similarly high average income per person. However, a visualization of their income distributions shows that Country Alpha has a much taller column representing the income of its wealthiest 10% compared to Country Beta. The columns representing the poorest 10% in Country Alpha are also much shorter than in Country Beta. What is the most logical conclusion that can be drawn from this information?

  • Analyzing Simultaneous Trends in Income and Inequality

  • The 'Skyscrapers' in Global Income Distribution Visualizations

  • Visualization of Income Extremes in 2020: Somalia and the United Arab Emirates