Inequality Concepts 1 Quiz

What is the primary form of income paid to households for their labour?

• Rent

• Wages

• Interest

• Profit

Which term refers to the allocation of returns from the four factors of production among the population?

• Income inequality

• Wealth

• Income distribution

• Transfer payment

What is the definition of income inequality?

• The total assets owned by an individual

• The degree to which income is unevenly distributed among people in the economy

• The price paid for the use of capital

• Payments received from the government in the form of social service benefits

What is interest in economic terms?

• The price paid for the use of land

• Payments to higher level employees

• The price paid for the use of capital

• Payments to employees for their labour

How is profit generally expressed?

• As a monthly percentage of wages

• As a daily rate

• As an annual percentage of the value of the capital

• As a fixed amount per unit produced

Which of the following describes rent in economics?

• Payments in return for the use of capital

• Payments in return for the use of land or other natural resources

• Payments to employees based on hours worked

• Payments received from the government

What distinguishes salaries from wages?

• Salaries are paid to lower-level employees and based on hours worked

• Salaries are calculated on an annual basis and not usually related to production achieved or hours worked

• Salaries are received from the government as social service benefits

• Salaries include payments for the use of capital

Which term refers to payments received by individuals from the federal government in the form of cash social service benefits?

• Income

• Transfer payment

• Rent

• Profit

What is the primary form of payment for employees based on their labour or human effort to the production process?

• Interest

• Rent

• Wages

• Profit

What is wealth in economic terms?

• The total assets owned by an individual or income unit, and the nation at any one time

• Payments received for the use of capital

• The price paid for the use of land

• Payments to employees for their labour