Question

Which of the following is true about the relationship between natural resources distribution and income in the region?

A. Unequal distribution leads to higher income.

B. Equal distribution leads to lower income.

C. Unequal distribution leads to lower income.

D. Equal distribution leads to higher income.

Answer 1

A country can experience greater equality in the distribution of income, yet still have high rates of poverty due to low overall income levels and other socio-economic factors.

Step-by-step explanation:

In general, a country can experience greater equality in the distribution of income, yet still have high rates of poverty. This can occur when the overall income level in the country is low, even if the distribution of that income is more equal. For example, if the average income in a country is very low, even if the income is distributed more equally, it may still result in high rates of poverty.

Additionally, other factors such as unemployment, lack of access to education and healthcare, and economic policies can also contribute to high poverty rates, regardless of income distribution.

Therefore, it is important to consider not only the distribution of income, but also the overall level of income and the various factors that can impact poverty rates in a country.