Question

In democracies around the world, the income of top 20% of population is _______________.

• A. Increasing.
• B. Sustained.
• C. Gradually decreasing.
• D. Same.

Answer 1

The correct option is A Increasing.

Over the years many students of democracy have gathered careful evidence to see what the relationship of democracy with economic growth and economic inequalities is. Within democracies there can be very high degree of inequalities. In democratic countries like South Africa and Brazil, the top 20 per cent people take away more than 60 per cent of the national income, leaving less than 3 per cent for the bottom 20 per cent population. Countries like Denmark and Hungary are much better in this respect. Hence, Option A is correct. The rest of the factors are not indicative of the the actual growth of economy in democracy, hence, incorrect.