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When China Embarked on Market Changes Towards Urbanization and Manufacturing

Question 265

Multiple Choice

When China embarked on market changes towards urbanization and manufacturing in 1978, urban disposable incomes were 2.6 times greater than rural net income. By 2008 they were 3.3 times bigger. Which of the following have the market changes sketched above have most likely NOT caused?


A) Increased income inequality between rural and urban populations
B) A movement towards a bell-shaped distribution of income
C) An increased Gini ratio
D) The Lorenz curve for income to move further away to the line of equality

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