Inequality Review

Income inequality refers to the degree to which income is unevenly distributed among people.

• True

• False

The Gini coefficient is a graphical representation of the degree of income inequality in an economy.

• True

• False

Inequality results in lower work efficiency.

• True

• False

An area of social service payments in Australia that has a distribution function is:

• family allowance

• single parents' benefit

• aged pensions

• all of the above

A common measure of poverty is:

• the Lorenz curve

• income gap index

• GDP per capita

• shadow prices

The government could encourage income earners to prepare for their retirement by:

• indexing pensions

• extending people's working age

• providing tax incentives for people to take out superannuation policies when they commence work

• developing facilities for aged care.

What is the main reason put forward as to why inequalities of income should be maintained?

• Very few people actually starve in Australia

• Women are discriminated against in the distribution of income

• Inequality rewards initiative and promotes incentive

• Inequalities can be reduced through redistribution

Real GDP per capita figures tell us nothing about a nation's:

• standard of living

• income distribution

• rate of economic growth

• level of economic development

Household wealth is largely held as real estate.

• True

• False

Wealth is relatively evenly distributed in Australia.

• True

• False