Lecture 6: Economic Implications: Globalisation and Inequality

Question 1

Inequality’s 3 dimensions

Answer 1

• Between nations
• Within nations
• Across the world

Question 2

Gini Coefficient

Answer 2

0 means totally equal, and 1 means one person has all the income

• Inequality indicators
• Highly unequal countries are usually 0.6, equal countries are 0.3

Question 3

Kuznets Curve

Answer 3

• Inequality starts low
• As economy grows there is inequality, disparity of the rich vs poor
• The curve goes down, programs start to kick in, disperse of income occurs and thus low inequality

Question 4

Reasons for inequality

Answer 4

• Globalisation
• Technology
• Local gov. policies
• Probably a combination of these
• Not all countries are the same, each country had their own issues