Question

You are a manager at Nike Corporation. Your boss asks you to make a list of things that are true about income inequality in a country. Which statements would be on your list?

I. The richest 1% of the world's population claims as much income as the bottom 57%
II. GNI is the most effective tool for estimating the relative wealth of a nation's citizens
III. Among industrialized nations, the United States has the largest inequality gap between rich and poor
IV. Income inequality between metropolitan and rural areas threatens a country's social stability

Answer 1

True statements about income inequality include the significant share of global income by the top 1%, GNI as a useful national wealth estimation tool, higher income inequality in the US compared to Western Europe, and the potential for income disparity to threaten social stability between metropolitan and rural areas.

Step-by-step explanation:

As a manager at Nike Corporation tasked with listing facts about income inequality in a country, the following statements could be included:

• The richest 1% of the world's population claims a significant portion of global income, though exact proportions can vary over time.
• Gross National Income (GNI) is a useful tool for estimating the wealth of nations, but it may not perfectly reflect the relative wealth of individual citizens within a country.
• The United States exhibits a higher level of income inequality compared to most Western European countries but has both higher and lower inequality when compared to various other countries around the world.
• Income inequality between metropolitan and rural areas can impact social stability within a country, potentially leading to social unrest.