Question

Which one of the following statements is INCORRECT? Group of answer choices The higher the GDP of a country, the more equal its income distribution. The primary sector accounts for a larger share of GDP for LDCs than MDCs. Workers in MDCs are more productive than those in LDCs. The HDI is a function of economics, social, and demographic indicators. Women participate in formal and informal economies even in LDCs with high levels of gender inequality.

Answer 1

Answer:

The higher the GDP of a country, the more equal its income distribution. FALSE

Explanation:

The country with the highest GDP, the US, has a medium to high Gini coefficient in income inequality (0.39), and the higher the number, the worse off. China which has the second highest GDP, has a very high coefficient (0.51). The countries with the lowest coefficient are Slovak Republic (0.24), Slovenia (0.24) and Czech Republic (0.25), and they are not necessarily very wealthy nations.

Several developing nations, e.g. Uruguay (0.37), Ukraine (0.26), Uganda (0,.37), etc., all have better income distribution than the US and China. Although generally, countries with high GDP have a a higher income distribution than average, it is not always that way.