Unequal Distribution Of Income And Wealth Flashcards
1
Q
Income
A
The flow of money going to factors of production.
• Salaries/wages
• Interest
• Profits
2
Q
Wealth
A
The current value of assets owned by someone or society as a whole.
• Savings
• Ownership
• Stocks
• Pensions
3
Q
Gini coefficient
A
A measure of statistical dispersion intended to represent the income and income wealth distribution of a nations residence.
0 = Perfect Equality
1 = Maximum inequality
4
Q
Equation for Gini equation
A
A
——
A+B
5
Q
Causes of inequality (5)
A
Luck
Inheritance
Income inequality
Education quality
State impact
6
Q
Policies to lower inequality (5)
A
Higher minimum wage
Improved education system
More progressive tax system
Increase benefits
Increase personal allowance
7
Q
Reasons for Laffer curve (3)
A
Tax Avoidance/Evasion
Brain drain
Disincentives
