Multiple Choice

Two economic historians are debating the primary cause of the major surge in global income inequality that began to accelerate in the 18th century.

  • Historian 1 argues: 'The divergence was primarily caused by long-standing differences in political institutions and legal systems. Some nations simply had systems more conducive to wealth accumulation all along, and this gap naturally widened over time.'

  • Historian 2 argues: 'The divergence was triggered by a radical transformation in how and where goods were made, driven by technological breakthroughs. This fundamentally reordered the global economy, concentrating manufacturing and wealth in a handful of nations.'

Which of the following statements provides the best evaluation of these two arguments based on the historical trend known as the 'great divergence'?

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Updated 2025-07-28

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