The income inequality among Gublandians is increasing. 90% of the

Question

The income inequality among Gublandians is increasing. 90% of the resources are now controlled by 10% of the population. The average salary of a Gublandian, however, is decreasing.

Which of the following can be inferred from the statements above?

(A) The economy of Gublandia is shrinking.

(B) The labor force of Gublandia is experiencing increasing hardship.

(C) Barring any alteration in the trend, more than 90% of Gublandia’s resources will be controlled by 10% of the population.

(D) The income inequality of Gublandia will result in civil unrest.

(E) The growth in income inequality of Gublandia will continue unabated.

globaldesi · Answer

The income inequality among Gublandians is increasing. 90% of the resources are now controlled by 10% of the population. The average salary of a Gublandian, however, is decreasing.

Which of the following can be inferred from the statements above?

Inference :
given " inequality among Gublandians is increasing" and "The average salary of a Gublandian, however, is decreasing." . hence the trend is contious. That means if any alterations are not done trend will continue.

(A) The economy of Gublandia is shrinking. out of scope

(B) The labor force of Gublandia is experiencing increasing hardship. no where mentioned

(C) Barring any alteration in the trend, more than 90% of Gublandia’s resources will be controlled by 10% of the population. expected as inferred

(D) The income inequality of Gublandia will result in civil unrest. no where mentioned

(E) The growth in income inequality of Gublandia will continue unabated. out of scope 
C is the answer

Raja1406 · Answer

Given:-
1) 90% resources is with 10% people.
2) 90% remaining people have 10% resources.
3) Avg. Salary is decreasing(This means incomes of rich and/or poor decreasing) but as poor are significaficantly 
high in number so they must be deciding factor in calculation of avg.
Now Total resources = owened by 10% pepole( let it be x) + owened by 90% people(let it be y)
% of resources own by 10% people= x/(x+y)*100
As income of poor decreasing so 'y' will further decrease so even if 'x' is constant 
% of resorces owned by 10% will keep increasing given the trend goes on.

Invincible_147 · Answer

My only problem with option C is, we don't know if the Rich having 10% of the resources is a correlation or a causation

Fullridedreams · Answer

I incorrectly selected B. Since the average salary in the country is decreasing, it can be reasonably inferred the labor force would be experiencing economic hardship.

The underlined portion in the text very subtly implies there is a trend happening. I missed it in my timed practice.
"90% of the resources  are now controlled  by 10% of the population."

Sneaky, but that makes this a great 705-805 level question.

Aarti0701 · Answer

If option C is right , then should E not be right as well, because increase in difference in resource allocation itself means increase in income inequality. Someone please comment.

Aarti0701 · Answer

Got it now! I guess "Barring any alternation in the trend" makes "C" more valid and there is no such comment for E.

JS26 · Answer

If trend of rising inequality doesn't change, shouldn't it be like 90% of resources will be controlled by LESS than 10% of population?

The income inequality among Gublandians is increasing. 90% of the

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The income inequality among Gublandians is increasing. 90% of the

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