Analyzing Inter-Country Income Gaps

The observation that in 2020, the average income in Norway was nearly seven times that of Nigeria is a direct illustration of what economic phenomenon?

In 2020, the average income in a high-income country like Norway was approximately seven times the average income in a lower-income country like Nigeria. This large difference in national averages means that even the poorest individuals in Norway were wealthier than the wealthiest individuals in Nigeria.

Implications of National Income Disparities

Match each statement about income with the primary economic concept it illustrates.

Limitations of Using Average National Income for Comparison

An economist observes that in a given year, the average income in Country X is $70,000, while the average income in Country Y is$10,000. Which of the following statements represents the most accurate analysis of this specific observation?

Evaluating Aid Allocation Using Income Data

An economic analyst states, 'Since the average income in Country X is six times greater than in Country Y, any randomly selected person from Country X will be richer than a randomly selected person from Country Y.' Which of the following statements best identifies the flaw in this reasoning?

Interpreting Average National Income Data