Question

Which one of the following statements is INCORRECT?A) The higher the GDP of a country, the more equal its income distribution.B) The primary sector accounts for a larger share of GDP for LDCs than MDCs.

Answer 1

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

This statement is incorrect. There is no clear correlation between GDP and income distribution.

There are countries with very large GDPs and very unequal income distribution like Brazil, while there are others with large GDPs and very equal income distribution, like Japan.

Others, like the United States, fall somewhere in the middle.