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Economics (AS & A Level) · Oct / Nov 2025 · Paper 31 · Question 24

9708Economic development

What does the Kuznets curve show about the relationship between economic development and inequality?

  1. Athe Gini coefficient initially falls as countries develop from low to high income levels
  2. Bthe Gini coefficient initially rises as countries develop from low to high income levels
  3. Cthere is always a negative relationship between GDP per capita and the Gini coefficient
  4. Dthere is always a positive relationship between GDP per capita and the Gini coefficient

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Correct answer: B. the Gini coefficient initially rises as countries develop from low to high income levels

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