Short Answer

Interpreting Income Inequality Ratios

Two countries, Country X and Country Y, have the same overall average income per person. However, Country X has a rich/poor ratio of 6, while Country Y has a rich/poor ratio of 20. The rich/poor ratio is calculated by comparing the average income of the wealthiest 10% of the population to that of the poorest 10%. Based on this information, explain what the difference in these ratios likely means for the economic circumstances of the poorest citizens in Country Y compared to Country X.

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Updated 2025-08-04

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