4.1.7 Flashcards
1
Q
define wealth
A
stock of assets owned at a period of time
2
Q
define income
A
flow of revenue earned over a period of time from using assets or selling your labour
3
Q
what does the Lorenz curve show?
A
the distribution of income
4
Q
gini co-efficient equation?
A
∝ / ∝ + B
5
Q
what does it mean when the gini co-efficient = 1?
A
1 person has all the wealth
the closer to 1, the more unequal the society
6
Q
define equitable
which degree line?
A
fair and impartial
45° line
7
Q
causes of income inequality?
A
monopsony
trade unions
8
Q
consequences of income inequality?
A
failure in labour market -> people get low wages
