According to World Bank (2012),in Ethiopia,the poorest 20 percent of population received 9.3 percent of income or consumption and the richest 20 percent of population received 39.4 percent of income or consumption; in South Africa,the poorest 20 percent of population received 2.7 percent of income or consumption and the richest 20 percent of population received 68.2 percent of income or consumption.What conclusion can we reach based on the above statistics?

Question

Quizplus · Accepted Answer

The statistics show that the income distribution in South Africa is more unequal than in Ethiopia, as the richest 20 percent of the population earns over six times more than the poorest 20 percent. This means that income inequality is a more pressing issue in South Africa, as there is a greater concentration of wealth in the hands of a few individuals or households. This is also supported by the fact that the poorest 20 percent in South Africa only receive 2.7 percent of income or consumption, which is significantly lower than in Ethiopia. Absolute and relative poverty may also be issues in these countries, but the statistics provided only speak to income distribution. The information given does not provide any indication of economic growth, so choice D cannot be determined from the data.

According to World Bank (2012),in Ethiopia,the Poorest 20 Percent of Population