Inequality Flashcards
1
Q
What is wealth and give examples
A
The abundance of valuable financial assets
Examples:
Stocks
Property
Land
Savings
2
Q
What is income
A
The inflow of money received on a regular basis
3
Q
Draw the lorenz curve and write the formula for the Gini coeeficient
A
Did you remember:
1.X axis=cumulative % of income
2.Y axis=cumulative % of population
3.Diagonal line of perfect income equality
4.A vertical line to complete a right angle triangle on the right
5. Curved line which gets steeper as it increases
6. Gini coefficient=A/(A+B)
4
Q
What does a gini coefficient of 0 and 1 mean
A
0=perfect equality
1=perfect ineuqality
5
Q
Factors affecting inequality
A
Minimum wage rates
Inequality in wages
Unemployment
Changes to the UK tax system
