income and wealth inequality Flashcards

1
Q

what is income

A

a flow of money measured over a given period of time

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2
Q

what is wealth

A

the sum , or stock of all your assets added together

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3
Q

reasons for differential in income and wealth

A

age -the older someone is the higher the income as they
are likely to have :
-more skills and are likely to be more productive ,
-more experience so they can demand higher wages
-wealth accumulation can be greater

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4
Q

education(distribution of income)

A

the more qualifications some has (alevels and degrees) the greater the earning potential of that individual is likely to be

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5
Q

ownership of financial assets -through employer pension ,bonds.

A

unequal distribution ,those who own them will be better off than those who don’t (bonds)

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6
Q

ownership of property(housing)

A

Those who own property will be wealthy as prices go up lead to divide in the distribution of wealth compared to those who can’t afford it

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7
Q

wage differentials (distribution of income)

A

The greater the wage differentials the greater the inequality of the distribution of income will b e(role of state benefits here)

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