A country's income distribution is important because it gives a more reliable picture of a country's
A)consumer tastes.
B)taxable income.
C)purchasing power.
D)discretionary income.
E)cost of living.

Question

Quizplus · Accepted Answer

A country's income distribution is important because it gives a more reliable picture of the country's purchasing power. This is because income distribution provides information on how income is spread across different income groups within a country. An unequal income distribution, where a small percentage of the population controls a large percentage of the income, can lead to a larger gap between the purchasing power of the rich and poor. This can have implications for the economy as a whole, including consumer spending, savings rates, and overall economic growth.

A Country's Income Distribution Is Important Because It Gives a More