Questions
FINA3401.13791.202610 Midterm CFA Quiz- Requires Respondus LockDown Browser
Single choice
According to the Organisation for Economic Co-operation and Development, income inequality is:
Options
A.determined as the ratio between the average income of the richest 10% of the population to the poorest 10% of the population
B.decreasing with globalization, skill-based technological change, and changes in countries' policy approaches
C.contributing to the increase in purchasing power of the middle class
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Step-by-Step Analysis
The question asks about how the OECD characterizes income inequality, and presents three options for evaluation.
Option 1: 'determined as the ratio between the average income of the richest 10% of the population to the poorest 10% of the population.' This framing corresponds to a common inequality metric (the 90/10 income ratio), which captures how ......Login to view full explanationLog in for full answers
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