8.2 Equity and redistribution of income and wealth

Question 1

Equity

Answer 1

where the distribution of, say, income or wealth is fair

Question 2

Wealth

Answer 2

an accumulated stock of assets

Question 3

Lorenz curve

Answer 3

a graphical representation of inequality

Question 4

Gini coefficient

Answer 4

a numerical measure of inequality

Question 5

Progressive tax

Answer 5

one where the rate rises more than proportionately to the rise in income

Question 6

Regressive tax

Answer 6

one where the ratio of taxation to income falls as income increases

Question 7

Means-tested benefits

Answer 7

benefits that are paid only to those whose incomes fall below a certain level

Question 8

Poverty trap

Answer 8

where an individual or a family are better off on means -tested benefits rather than working

Question 9

Universal benefits

Answer 9

benefits that are available to all irrespective of income or wealth

Question 10

Negative income tax

Answer 10

a unified tax and benefits system where people are taxed or receive benefits according to a single set of rules