The Kuznets hypothesis, discussed in the Case in Point titled "(Growth and Development) or (Growth or Development)," argued that at low levels of per capita income, increases in income would likely
A) increase income inequality in developing countries.
B) reduce income inequality in developing countries.
C) increase the rate of structural change in developing countries.
D) reduce the rate of structural change in developing countries.

Question

Quizplus · Accepted Answer

The Kuznets hypothesis suggests that in the early stages of economic growth, income inequality tends to increase as a country develops, due to structural changes and shifts in economic activities.

The Kuznets Hypothesis, Discussed in the Case in Point Titled