Which of the following statements is true concerning income inequality?
A)Income is equally distributed in poor countries.
B)Developed countries have greater income inequality than developing countries.
C)The government has no way to alter income inequality.
D)The free market produces an unequal distribution of income.

Question

Quizplus · Accepted Answer

The free market produces an unequal distribution of income due to factors such as differences in education, skills, experience, and work ethic among individuals. While government policies can play a role in reducing income inequality, they cannot completely eliminate it. Poorer countries may have less income inequality due to the smaller overall income but this does not mean income is equally distributed. Developed countries generally have greater income inequality than developing countries due to factors such as greater income mobility and a larger income gap between high-skilled and low-skilled workers.

Which of the Following Statements Is True Concerning Income Inequality