In 1960, the wealthiest 20 percent of the world’s population had more than __ times the income of the poorest 20 percent.
a. 20
b. 10
c. 30
d. 40
The correct answer and explanation is:
The correct answer is c. 30.
In 1960, the wealthiest 20 percent of the global population had more than 30 times the income of the poorest 20 percent. This gap in income distribution was a clear indication of the growing disparities between the rich and the poor. Over the decades, such disparities have only widened in many regions of the world, with significant implications for economic inequality, social mobility, and access to resources.
Income inequality is a concept that reflects the uneven distribution of income across individuals or households. The measurement of inequality often highlights the differences between the wealthiest and the poorest segments of the population. In 1960, many developing countries had less developed economies, with limited industrialization and a smaller middle class. The wealthiest 20 percent in wealthier nations, including those in North America and Europe, typically had access to advanced industries, better-paying jobs, and higher levels of capital accumulation.
Conversely, the poorest 20 percent of the global population, often located in less developed countries or regions, had minimal access to education, healthcare, and job opportunities. They were often dependent on agriculture, with lower wages, fewer assets, and limited opportunities for economic advancement. In this context, the stark income gap between the wealthiest and the poorest 20 percent reflected not only disparities in income but also differences in access to power, education, and economic resources.
This level of inequality has been the subject of debate in economics and policy-making. Income inequality can have long-term consequences, affecting social stability, economic growth, and the quality of life for individuals in poorer segments of society. Efforts to reduce such disparities have focused on improving education, healthcare, infrastructure, and social safety nets to create more opportunities for those at the bottom of the income distribution.