Suppose that the entire population of the world consist of four people, divided
ID: 1257985 • Letter: S
Question
Suppose that the entire population of the world consist of four people, divided into two countries of two people each.
The following table shows data on their income and nationality. Based on this table, which is the more important source of world inequality: between country inequality or within-country inequality?
Person
Nationality
Income
A
Country A
1000
B
Country B
2000
C
Country B
3000
D
Country A
4000
Person
Nationality
Income
A
Country A
1000
B
Country B
2000
C
Country B
3000
D
Country A
4000
Explanation / Answer
Between countries there is no equality as both have per capita income of 2500
2000+3000/2 = 2500
1000+4000/2 = 2500
But in country B income is more equally distributed and within country inequality is less as range is 3000-2000 = 1000.
But in country A, income is less equally distributed. Inequality range is 4000-1000 = 3000.
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