Poverty And Inequality Flashcards
1
Q
Define Income
A
A flow of money to a factor of production (usually labour)
2
Q
Define Wealth
A
A stock of valuable assets (eg. Property, shares)
3
Q
What are the factors leading to unequal distribution of income?
A
- Differences in skill, qualifications and work experience
- Differences in wealth
- Impacts of state
4
Q
What are factors leading to an unequal distribution of wealth?
A
- Difference in income
- Inheritance
- Property
- Marriage
5
Q
The Lorenz Curve
A
Area A/Area A+B
Y Axis - percentage of income
X Axis - Percentage of population
6
Q
Possible costs of income and wealth inequality
A
- Social tensions
- The creation of an underclass
