Question

Calculate the Kuznets Ratio for Bangladesh based on size distribution: The lowest 40% receives 17.3% of national income and the highest 20% receives 45.3%.

Answer 1

Answer:

Kuznets Ratio = 2.62

Explanation:

Kuznet Ratio = % share of income received  by richest 20%

                       % share of income received by poorest 40%

Given : The lowest 40% receives 17.3% of national income and the highest 20% receives 45.3%.

So, Kuznets Ratio = 45.3 / 17.3

= 2.62