ECONOMICS
ECONOMIC DEVELOPMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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has consistently declined from the 1920s to today
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declined since the 1920s but has increased since the early 1980s
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has increased since the 1980s but has declined since the early 2000s
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has remained at the same level since the 1920s
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Detailed explanation-1: -Some of key factors behind the increase in within-country income inequality noted in the literature include technological progress, globalization, commodity price cycles, and domestic economic policies such as redistributive fiscal policies, labor and product market policies.
Detailed explanation-2: -During the 1920s, there was a pronounced shift in wealth and income toward the very rich. Between 1919 and 1929, the share of income received by the wealthiest one percent of Americans rose from 12 percent to 19 percent, while the share received by the richest five percent jumped from 24 percent to 34 percent.
Detailed explanation-3: -The disparity among countries in levels of economic development is by far the greatest source of global inequality. Differences between developed and developing countries are massive: the average developed nation’s per capita income is seven times that of the average developing country’s.