Inequality 4.2.2

Question 1

Define Income inequality

Answer 1

When the best paid workers take home more income than the rest of a country’s workers

Question 2

What does the Lorenz curve measure

Answer 2

Measures income inequality across countries

Question 3

What is the gini coefficient formula

Answer 3

A/A+B

Question 4

What are the gini coefficient values

Answer 4

0 = perfect income inequality
1 = total income inequality

Question 5

Define wealth inequality

Answer 5

When wealth is shared unequally between a population

Question 6

Factors influencing inequality

Answer 6

Education
Unemployment
Trade Unions

Question 7

5 Causes of changes in equality

Answer 7

Min wage rate
Assortative Mating
Social Benefits and Tax
The R>G hypothesis
Inheritance

Question 8

What is the R>G hypothesis

Answer 8

If R the rate of return on wealth is greater than G the rate of growth, wealth grows faster than incomes, worsening wealth inequality

Question 9

How does capitalism increase inequality

Answer 9

Higher skilled workers earn more than lower skilled workers