Lesson B: Wealth

Question 1

what is wealth?

Answer 1

total stock of economic resources and possessions at a fixed point in time

Question 2

what is marketable wealth?

Answer 2

assets which can be disposed of or sold. adds on estimated cash value of pensions entitlements

Question 3

where do wealth stats come from?

Answer 3

1) the wealth and asset survey
2) rich list by sunday times
3) Inland revenue - when someone dies, value of estate is calculated for tax
4) annual survey of hours and earnings - info on distribution of earnings

Question 4

give an example of a rich person.

Answer 4

james dyson - £23bn

Question 5

what are three positive consequences for being rich and wealthy?

Answer 5

financial stability
help + donate to community
make connections

Question 6

what are three negative consequences for being rich and wealthy?

Answer 6

stress
lots of money comes with responsibility
can introduce fame + platform, in limelight

Question 7

what are the problems with measuring wealth?

Answer 7

defining what counts as wealth can be problematic

calculating value of assets is difficult

obtaining wealth data is difficult. many wealthy people conceal wealth to avoid taxation

Question 8

give three stats about trends in income distribution.

Answer 8

britain is one of most unequal societies in europe in terms of income

bottom 10% of population earn £8468, top 10% earn £79042

top 1% average income of £259,917, top 0.1% had income of £941,582

Question 9

what did the birmingham commision report by rowlinson find?

Answer 9

wealth inequalities occur in different ways. eg. some have higher incomes, some accumulate wealth rather than spend, some receive high levels of inheritance

wealth affects physical and mental wellbeing, education and employment

report suggests that gov should consider actions to redistribute wealth including fairer rewards for working and reforms to wealth taxation, council tax and capital gains tax