2.4 - Signposting

Question 1

Causes of Income/Wealth Inequality

Answer 1

• Age
• Education
• One sector dominant and capital intesive production
• Globalisation and free movements of labour and trade
• Technology
• Ownership of Financial Assests and Property
• Corrupt Governance

Question 2

Consequences of Income Inequality - Costs

Answer 2

• Higher levels of debt
• Costs to the Government
• Social Costs
• Lower Economic Growth

Question 3

Consequences of Income Inequality - Benefits

Answer 3

• Incentives for individuals to gain qualifications and skills by improving their level of education
• Encourage enterprise and entrpeneurial spirit
• Promotes a work and not welfare attitude
• Trickle down effect

Question 4

Causes of Poverty

Answer 4

• Poor education and healthcare
• Recession
• Born into poverty
• Work before education

Question 5

Consequences of Poverty

Answer 5

• Low Standards of Living
• Poverty Traps