Adressing Income and Wealth Inequality

Question 1

What are some economic reasons for income inequality?

Answer 1

1. Lack of Employment Opportunities
2. Poor training
3. Lack of investment in education
4. Bad Infrastructure

Question 2

What are the Policies to reduce Income Inequality?

Answer 2

1. Minimum Wage Rates
2. Transfer Payments
3. Progressive Taxes
4. State Provision for Essential Goods and Services

Question 3

What is the effect of a minimum wage?

Answer 3

It can reduce income inequality but produce unemployment.

Question 4

What are transfer payments?

Answer 4

These are direct payments from the government that do not involve production.