Chapter 9 The Distribution Of Income And Wealth

Question 0

Marketable wealth

Answer 0

Wealth that can be transferred to others

Question 1

Wealth

Answer 1

A stock of valuable assets

Question 2

Non marketable wealth

Answer 2

Wealth specific to a person, which cannot be transferred

Question 3

Distribution of wealth

Answer 3

How wealth is shared out between be population

Question 4

Sources of wealth

Answer 4

Inheritance
Savings
Entrepreneurship
Chance

Question 5

The causes of wealth inequality

Answer 5

Inheritance
Marriage
Income inequality
Chance

Question 6

Income

Answer 6

A flow of money to a factor of production. An individual’s income may include wages and state benefits.

Question 7

Distribution of income

Answer 7

How income is shared out been the factors of production.

Question 8

Lorenz curve

Answer 8

A diagrammatic representation of the distribution of income and wealth

Question 9

Gin coefficient

Answer 9

A statistical measure of degree of inequality of income or wealth

Question 10

Causes of income equality

Answer 10

Impact of the state
Wealth inequality
Household competition
Level of skills and qualifications
Difference in earnings

Question 11

Absolute poverty

Answer 11

When an individual or households income is insufficient for them to afford basic shelter, food or clothing

Question 12

Relative poverty

Answer 12

When people are poor in comparison to others in society

Question 13

What is used to measure poverty

Answer 13

Poverty audit

Question 14

Causes of poverty

Answer 14

Unemployement
Low wage
Sickness and disability
Old age
The poverty trap
Imperfect information

Question 15

Poverty trap

Answer 15

When individuals or households are no better off following a pay increase because tax paid increases and benefits are withdrawn.

Question 16

Policies used to tackle poverty

Answer 16

A national minimum wage
Cutting the bottom date of income taxes
Tackling unemployment
Training and education
Exploiting trackless down effects
Increasing benefits
Tax credits

Question 17

Vuluntary unemployment

Answer 17

When a worker chooses not to accept a job at the going wage rate

Question 18

Equity

Answer 18

Is about social justice and fairness, distribution goals. It requires that there is a fair distribution of welfare, that is a fair distribution of the economy’ gds + s’s

Question 19

Minimum wage

Answer 19

A minimum wage is a price floor - employers cannot legally undercut the current minimum wage rate per hour

Question 20

Vertical equity

Answer 20

Different treatment of people with different characteristics to promote greater equity

Question 21

Horizontal equity

Answer 21

Implies we give the same treatment to different people in an identical situation.