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C A foundation Economics Paper4 Part I Questions for practice


Q9) The greater the inequalities in the distribution of money incomes, the _______ the inequalities in the distribution of national output.

Correct

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Solution:
The answer is (a) greater.
The distribution of money incomes and the distribution of national output are closely related.

When there are greater inequalities in the distribution of money incomes, a smaller proportion of the population has access to resources, which can limit their ability to consume goods and services.

This, in turn, can lead to a concentration of national output in the hands of a small group of people or businesses, exacerbating inequalities in the distribution of national output.

Therefore, greater inequalities in the distribution of money incomes are likely to lead to greater inequalities in the distribution of national output.
Correct option is (a)