If all incomes in an economy were rising,but the incomes of the richest people were rising faster than the incomes of the poorest,this would be a success by the criterion of
A) absolute poverty reduction.
B) inequality reduction.
C) both a and b.
D) neither a nor b.

Question

Quizplus · Accepted Answer

This scenario describes a situation where all incomes are increasing, which means that the absolute level of poverty could be decreasing as even the poorest are seeing their incomes rise. However, since the incomes of the richest are rising faster, inequality is actually increasing, not decreasing. Therefore, it meets the criterion for absolute poverty reduction but not for inequality reduction.

If All Incomes in an Economy Were Rising,but the Incomes