Micro: Poverty And Inequality

Question 1

What is income

Answer 1

Income is the flow of money received

Question 2

What is wealth

Answer 2

Wealth is the sum of the value of all assets

Question 3

How often is income measured

Answer 3

Income is often measured on a monthly or annual basis

Question 4

What can wealth include

Answer 4

Wealth includes pensions, money in the bank, financial investments, and the value of a home

Question 5

What factors influence the distribution of income/wealth

Answer 5

Factors influencing distribution of income/wealth:

• Taxation policy
• The differences in wage between low and high skilled labour
• The level of discrimination against different groups of workers
• Regional differences in earnings.
• Unsalaried individuals depending on state benefits

Question 6

What will regressive policies tend to increase

Answer 6

Regressive policies will tend to increase the income and wealth gap between different groups in a country