Business I / Global Inequality
Practice question · Multiple choice

Global inequality between countries has narrowed since 1990 while inequality inside many countries has widened. Why can both be true?

Hints
  1. Ask what happens to global figures when a country of a billion people grows quickly.
  2. Two different groupings of the same people. Can their inequality move in opposite directions?
Show the answer

C. They measure different partitions of the same population

Why

Decomposing inequality into between-group and within-group components lets the two move independently, and China and India's growth is precisely the case. The 'elephant curve' makes the pattern visible, which is why the honest answer to 'is inequality rising?' begins with 'among whom?'

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