iNCOME AND WEALTH INEQUALITY/POVERTY

1. Which of the following best describes income inequality?

• A) A situation where everyone earns the same income.

• B) The unequal distribution of income within a society.

• C) A measure of how many people are unemployed.

• D) The concept that wealth and income are always fairly distributed.

2. What is a common consequence of high income inequality in a society?

• A) Increased social mobility.

• B) Greater economic stability.

• C) Higher levels of poverty and social unrest.

• D) Equal access to education and healthcare.

3. Which policy is often suggested to reduce income inequality?

• A) Reducing taxes on the wealthy.

• B) Implementing a progressive tax system.

• C) Eliminating social welfare programs.

• D) Increasing interest rates.

5. Which of the following is an example of a structural factor contributing to poverty?

• A) Lack of motivation.

• B) Low individual ambition.

• C) Inadequate access to education and healthcare.

• D) Personal spending habits.

9. Which of the following is often a barrier to escaping poverty?

• A) Access to high-quality education.

• B) Availability of well-paying jobs.

• C) Systemic discrimination and lack of opportunities.

• D) Strong social support networks.

Therefore, a Gini coefficient looks at that proportion of the population's ___________ by measuring perfect equality of income against the _______ curve.

• expenditure/Palma

• production/Palma

• income/Lorenz

• production/Lorenz

Which of the following statements is true about ageing and poverty?

• Ageing has no correlation with poverty

• Poverty is more common among younger people than older people

• Older people are at higher risk of poverty than younger people

• Ageing reduces the risk of poverty

Which of the following is a way in which tax policy can lead to poverty?

• Increasing tax exemptions

• Decreasing tax rates for the wealthy

• Implementing progressive tax policies

• Increasing tax rates for the poor

Which of the following is a potential outcome of tax policies that are not designed to address poverty?

• An increase in income inequality

• A decrease in income inequality

• A reduction in overall tax revenue

• No impact on the economy

inability to meet the basic needs such as food, shelter, and clothing necessary for survival

• absolute poverty
• relative poverty
• Human Development Index

• quality of life