Question

What conclusion can be reached from the following data on income shares?

Percentage of Income Received by
Lowest 40% Highest 20%
Bangladesh 17.3 45.3
Indonesia 14.4 49.4
(a) absolute poverty is more widespread in Bangladesh
(b) the size distribution of income is more unequal in Indonesia
(c) Bangladesh had adopted a strategy of redistribution with growth
(d) growth in Bangladesh is calculated using poverty weights rather than income weights

Answer 1

The conclusion that can be reached from the given data on income shares is that the size distribution of income is more unequal in Indonesia. Option b.

Step-by-step explanation:

The conclusion that can be reached from the given data on income shares is: (b) The size distribution of income is more unequal in Indonesia.

This can be inferred from the fact that the percentage of income received by the highest 20% in Indonesia is significantly higher than in Bangladesh. In Indonesia, the highest 20% receives 49.4% of the income, while in Bangladesh, the highest 20% receives 45.3% of the income. This indicates a greater income inequality in Indonesia.