Th4.1: Wealth and Income Inequality Flashcards
1
Q
What is income?
A
a flow of earnings
2
Q
What is wealth?
A
a stock of asset
3
Q
What does income inequality refer to?
A
the extent to which income is distributed in an uneven manner
4
Q
Why is wealth more likely to be more unequally distributed than income?
A
because assets that make up wealth can be accumulated over time
5
Q
People who are wealthy now can generate an income from those assets and as long as…
A
income exceeds expenditure, can build up a stock of assets
