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
B
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If the Fed were to impose a slight increase in the required reserves ratio, there would be _____.
(A) No change in the money supply. (B) An increase, then a decrease, in the money supply. (C) An increase in the money supply. (D) A decrease in the money supply.
In the Keynesian model in the long run, a decrease in the money supply will cause
A) a decrease in output and an increase in the real interest rate. B) an increase in the real interest rate but no change in output. C) a decrease in the real interest rate and a decrease in output. D) no change in either the real interest rate or output.