In the context of development economics, the 'Kuznets Curve' suggests that:
A. Inequality is unrelated to the level of development
B. Inequality first rises and then falls with economic development
C. Inequality rises continuously with development
D. Inequality falls continuously with development
Answer: Option B
Solution (By JKSSB Mock Tests)
The Kuznets hypothesis proposes an inverted-U relationship between income inequality and per capita income: inequality rises in the early stages of development and declines later.
No comments yet. Be the first to start the discussion!