As economic development proceeds income inequality tends to follow a(n) _____ curve?
Correct answer: B. inverted U shaped
- A. convex
- B. inverted U shaped
- C. L-shaped
- D. S-Shaped
Explanation
The Kuznets hypothesis proposes that inequality first rises during early development and later falls as an economy becomes more advanced, producing an inverted U-shaped curve. The other curve descriptions do not express this pattern.
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