Economics 9708 · AS & A Level · Trade unions

Trade unions — practice question

The estimated turning point on the Kuznets curve for income inequality is around US$10 500. For a nation with GDP per capita of $8000, what is the most likely outcome?

  • AA reduction in GDP per capita will have no effect on income inequality.
  • BA reduction in GDP per capita will increase income inequality.
  • CAn increase in GDP per capita will have no effect on income inequality.
  • DAn increase in GDP per capita will increase income inequality.

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