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Developing countries who have adopted capital-intensive technologies tend to have

(a) relatively higher Gini coefficients.
(b) relatively lower Gini coefficients.
(c) Gini coefficients equal to one.
(d) Gini coefficients equal to zero.

User KKlouzal
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Final answer:

Developing countries adopting capital-intensive technologies typically have relatively higher Gini coefficients due to increased inequality when benefits are concentrated among a small elite. Conversely, more equitable distribution of technology and growth benefits can lead to lower Gini coefficients.

Step-by-step explanation:

The Gini coefficient is a measure of inequality within a nation. When developing countries adopt capital-intensive technologies, they may experience an increase in income inequality. This is because such technologies often lead to greater productivity and wealth generation, but the benefits might be concentrated among those who already have capital and skills, such as a technologically savvy elite or those who own the businesses that are investing in these technologies. Therefore, these countries tend to have (a) relatively higher Gini coefficients.

In contrast, in a situation where investments in human and physical capital are distributed more evenly across the population, and where there is an equitable growth strategy, the Gini coefficient might be lower. States with homogeneous populations and a more equitable distribution of resources, like Utah, often have lower Gini coefficients, as opposed to places with a mix of highly lucrative industries and varied populations, such as New York or California, which tend to have higher levels of inequality. Similarly, countries that spread the benefits of technology and growth across their populations more evenly would tend to have lower Gini coefficients.

User Dubas
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