Income Ineqaulity Unit 2

What is income inequality?

• a) The unequal distribution of wealth among individuals.
• b) The unequal distribution of income among individuals.
• c) The equal distribution of income and wealth.
• d) The absence of income and wealth.

Which of the following is NOT a factor contributing to income inequality?

• a) Education level
• b) Occupational choice
• c) Government policies
• d) Universal basic income

Wealth inequality refers to

• a) The unequal distribution of income.
• b) The unequal distribution of assets and resources.
• c) The absence of wealth.
• d) The equal distribution of property.

Which economic indicator is commonly used to measure income inequality within a country?

• a) Gross Domestic Product (GDP)
• b) Consumer Price Index (CPI)
• c) Gini coefficient
• d) Unemployment rate

How is the Gini coefficient calculated?

• a) It measures the total wealth of a country.
• b) It calculates the average income of the population.
• c) It quantifies the level of income inequality within a society.
• d) It determines the rate of inflation.

Which of the following government interventions could help reduce income inequality?

• a) Decreasing the minimum wage
• b) Implementing regressive taxation
• c) Expanding social welfare programs
• d) Reducing access to education

Which group is more likely to experience wealth inequality?

• a) Urban professionals
• b) Blue-collar workers
• c) Highly educated individuals
• d) Retirees with pensions

What is the primary concern regarding extreme wealth inequality in a society?

• a) It can lead to higher inflation rates.
• b) It may hinder economic growth and social stability.
• c) It encourages higher rates of savings and investment.
• d) It has no impact on the overall economy.

What is the term used to describe the idea that the rich become richer while the poor become poorer over time?

• a) Progressive taxation
• b) Laissez-faire economics
• c) Wealth concentration
• d) Poverty trap

Inequality of opportunity refers to

• a) The unequal distribution of wealth.
• b) The unequal distribution of income.
• c) Unequal access to education and resources that can lead to different life outcomes.
• d) The absence of government intervention in the economy.