Reducing Inequality Flashcards
1
Q
Income
A
Flow of money into a household at a given point in time
2
Q
Wealth
A
Value of assets within a household at a given point in time
3
Q
Benefits of inequality
A
Creates incentive to work
Encourages investment into businesses and work force
4
Q
Costs of inequality
A
Inequality undermines price mechanism, ignores those with no income put ppl of buying
Underconsumption of merit goods over consumption of demerit goods
Lower quality of life
Inc crime
