2.1 Economics Quiz - Income Inequality

Income Inequality...

• benefits low wage earners

• favors the richest 1%

• does not exist in America

• is unfair to the richest 1%

"Congress reacted to the massive economic turmoil brought on by the pandemic with a series of large-scale interventions. Those helped boost wealth for all households. Lower-income and middle-income households dipped into their savings sooner than higher-income ones to pay their bills. The difference in financial emergencies and needs contributed to a renewed increase in wealth inequality during the current crisis." - Forbes Magazine 12/22/2021

According to Forbes the Pandemic caused income inequality to...

• decrease

• stay the same

• increase

• stay the same

What do we mean by the "gender gap in America?"

• On the average women make more than men for the same work.

• On the average men make less than women for the same work.

• On the average women make the same as men for the same work.

• On the average women make less than men for the same work.

What do we mean by the "racial wealth gap in America?"

• Centuries of discrimination and exploitation have left Black Americans much poorer than white Americans.

• Centuries of discrimination and exploitation have left Black Americans much richer than white Americans.

• Centuries of discrimination and exploitation have left Black Americans as wealthy as white Americans.

• Centuries of discrimination and exploitation has had no effect on Black Americans.

"The 400 richest American billionaires have more total wealth than all 10 million Black American households combined." - The Brookings Institute

What is the solution suggested by the Brookings Institute to solve the societal problem of the racial wealth gap in America? 

• a heavy taxation of the middle class

• having people work harder

• A heavy progressive taxation of wealth

• tax cuts for the wealthy