Chapter 7 : The disribution of income wealth : poverty and inequality

Question 1

What is income ?

Answer 1

Income is a flow of money.
Ex. wage

Question 2

What is wealth ?

Answer 2

Wealth is your stock of assets.
Ex. house or car

Question 3

What is FTSE100 ?

Answer 3

FTSE100 stands for the financial times stock exchange 100 index. It tracks the performance of the largest 100 UK companies as measured by the value of their shares.

Question 4

What is active income ?

Answer 4

Active income is income earned from something you are doing currently that allows you to receive income.
Ex. job

Question 5

What is passive income ?

Answer 5

Passive income is income earned from something your aren’t actively taking part in but you still receive income from.
Ex. AirBnb and dividends from stocks and shares

Question 6

What is a statistic that illustration an unequal distribution of income ?

Answer 6

The median CEO workers earns 113 times the full time median worker salary.