concepts

Question 1

additional_anki_data = [

Question 2

(“What is economic inequality?”

Answer 2

“Economic inequality refers to the unequal distribution of income

Question 3

(“What are the main causes of economic inequality?”

Answer 3

“Differences in education

Question 4

(“How does globalization affect income inequality?”

Answer 4

“Globalization can increase inequality by favoring skilled labor and capital over low-skilled workers.”)

Question 5

(“What is the Gini coefficient?”

Answer 5

“A measure of income inequality ranging from 0 (perfect equality) to 1 (perfect inequality).”)

Question 6

(“How do progressive taxes impact inequality?”

Answer 6

“Progressive taxes reduce income inequality by taxing higher incomes at higher rates.”)

Question 7

(“What is the difference between absolute and relative poverty?”

Answer 7

“Absolute poverty refers to the lack of basic necessities

Question 8

(“What is social mobility?”

Answer 8

“The ability of individuals or families to move up or down the economic ladder over time.”)

Question 9

(“What factors influence social mobility?”

Answer 9

“Education

Question 10

(“What is the difference between wealth inequality and income inequality?”

Answer 10

“Wealth inequality refers to the unequal distribution of assets

Question 11

(“How do minimum wages affect inequality?”

Answer 11

“Minimum wages can reduce income inequality by raising earnings for low-income workers but may also lead to job losses.”)

Question 12

(“What is the Lorenz curve?”

Answer 12

“A graphical representation of income or wealth distribution used to measure inequality.”)

Question 13

(“What is intergenerational mobility?”

Answer 13

“The extent to which children’s economic status differs from that of their parents.”)

Question 14

(“How do labor unions affect income inequality?”

Answer 14

“Labor unions negotiate higher wages and better conditions for workers

Question 15

(“What is economic rent?”

Answer 15

“Earnings above what is necessary to keep a factor of production in its current use.”)

Question 16

(“What are the effects of automation on inequality?”

Answer 16

“Automation can increase inequality by replacing low-skilled jobs while benefiting those who own capital or have advanced skills.”)

Question 17

(“What is the Great Gatsby Curve?”

Answer 17

“It shows a relationship between economic inequality and low social mobility; high inequality is associated with lower mobility.”)

Question 18

(“How does inflation affect income distribution?”

Answer 18

“Inflation disproportionately affects lower-income households

Question 19

(“What is capital income?”

Answer 19

“Income generated from owning assets

Question 20

(“What is labor income?”

Answer 20

“Income earned from wages

Question 21

(“How does fiscal policy impact income inequality?”

Answer 21

“Government spending and taxation can redistribute income and reduce inequality.”)

Question 22

(“What is the role of education in reducing inequality?”

Answer 22

“Higher education levels lead to better job opportunities and higher wages

Question 23

(“What is the Pareto principle in economics?”

Answer 23

“The principle that 80% of the wealth is held by 20% of the population

Question 24

(“How does financial literacy affect economic inequality?”

Answer 24

“Lower financial literacy can lead to poor financial decisions

Question 25

("What is rent-seeking behavior?"

Answer 25

"Efforts by individuals or firms to gain economic benefits through lobbying or manipulation rather than productive activities.")

Question 26

("What is the role of public goods in reducing inequality?"

Answer 26

"Public goods such as education

Question 27

("What is the Kuznets curve?"

Answer 27

"A hypothesis that suggests inequality increases in early stages of economic growth and then decreases as economies mature.")

Question 28

("What is the impact of wealth concentration on economic growth?"

Answer 28

"High wealth concentration can limit economic mobility and reduce aggregate demand

Question 29

("What is the difference between regressive

Answer 29

proportional

Question 30

("What is the role of inheritance in economic inequality?"

Answer 30

"Inheritance allows wealth to be passed down generations

Question 31

("How does economic inequality impact political power?"

Answer 31

"Higher economic inequality often leads to unequal political influence

Question 32

("What is market failure?"

Answer 32

"A situation where markets do not allocate resources efficiently

Question 33

("What is the principal-agent problem?"

Answer 33

"A conflict of interest where an agent (e.g.

Question 34

("What is the difference between positive and normative economics?"

Answer 34

"Positive economics describes how the economy works

Question 35

("What is the invisible hand?"

Answer 35

"Adam Smith’s concept that individuals pursuing their own interests unintentionally benefit society through market mechanisms.")

Question 36

("What is a public good?"

Answer 36

"A good that is non-excludable and non-rivalrous

Question 37

("What is an externality?"

Answer 37

"A cost or benefit of an economic activity that affects third parties not involved in the transaction.")

Question 38

("What is the Tragedy of the Commons?"

Answer 38

"A situation where individuals overuse a shared resource

Question 39

("What is asymmetric information?"

Answer 39

"A situation where one party in a transaction has more or better information than the other

Question 40

("What is monetary neutrality?"

Answer 40

"The idea that changes in the money supply only affect nominal variables and not real economic variables in the long run.")

Question 41

("What is price discrimination?"

Answer 41

"A strategy where firms charge different prices to different consumers based on willingness to pay.")

Question 42

("What is the law of diminishing marginal utility?"

Answer 42

"As consumption of a good increases

Question 43

("What is the paradox of thrift?"

Answer 43

"If everyone increases their savings during an economic downturn

Question 44

("What is the broken window fallacy?"

Answer 44

"The idea that economic activity generated from destruction (e.g.

Question 45

("What is the natural rate of unemployment?"

Answer 45

"The level of unemployment that exists when the labor market is in equilibrium

Question 46

("What is the Taylor Rule?"

Answer 46

"A monetary policy rule that suggests how central banks should set interest rates based on inflation and economic output.")

Question 47

("What is the time inconsistency problem?"

Answer 47

"When policymakers have an incentive to deviate from their long-term plans for short-term benefits.")

Question 48

("What is a speculative bubble?"

Answer 48

"A situation where asset prices exceed their fundamental value due to excessive demand and speculation.")

Question 49

("What is a liquidity trap?"

Answer 49

"A situation where monetary policy becomes ineffective because interest rates are already near zero.")

Question 50

("What is endogenous growth theory?"

Answer 50

"A theory that emphasizes the role of human capital

Question 51

("What is hysteresis in unemployment?"

Answer 51

"The idea that temporary high unemployment can lead to permanent increases in the natural rate of unemployment.")

Question 52

("What is financial repression?"

Answer 52

"Government policies that keep interest rates low and restrict capital movement to control inflation and finance government debt.")

Question 53

("What is the velocity of money?"

Answer 53

"The rate at which money circulates in the economy

Question 54

("What is the Beveridge curve?"

Answer 54

"A graphical representation of the relationship between job vacancies and the unemployment rate.")

Question 55

("What is the difference between capital deepening and capital widening?"

Answer 55

"Capital deepening increases capital per worker

Question 56

("What is wage stickiness?"

Answer 56

"The tendency of wages to be slow to adjust to changes in labor market conditions.")

Question 57

("What is the impact of automation on economic growth?"

Answer 57

"Automation increases productivity but can lead to job displacement and wage inequality.")

Question 58

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