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WorksheetsInequality in Income and Wealth Australia
Total questions: 15
Worksheet time: 8mins
Name
Class
Date
1.
An area of social service payments in Australia that has a distribution function is:
a)
Family Allowances
b)
Single Parent Benefits
c)
Aged Pensions
d)
All of the Above
2.
A common measure of poverty is
a)
Lorenz Curve
b)
Income Gap Index
c)
GDP Per Capita
d)
Shadow Prices
3.
What is the main reason put forward as to why inequalities of income should be maintained?
a)
Very few people actually starve in Australia
b)
Women are discriminated against in the distribution of income
c)
Inequality rewards inititiave and promotes incentives
d)
Inequalities can be reduced through redistribution
4.
What would it mean if the redistribution of income leaves the top 20% of income earners with less than 20% of total income
a)
The top 20% of income earners must have lower standard of living
b)
The lowest 20% of income earners must have higher standards of living
c)
The lowest 80% of income earners must be relatively better off
d)
The distribution of income must be more equal
5.
Real GDP per capita figures tell us nothing about a nations
a)
standard of living
b)
income distribution
c)
rate of economic growth
d)
level of economic development
6.
The Government could encourage income earners to prepare for their retirement by
a)
indexing pensions
b)
extending people working age
c)
providing tax incentives for people to take out superannuation policies when they commence work
d)
developing age care facilities
7.
In Australia, the poverty line is:
a)
the cost incurred for buying basic needs
b)
the minimum award wage
c)
the income that provides a minimum standard of acceptable living for a family
d)
the number of people classed as poor
8.
A situation in which a pensioner loses considerable amount of income through tax and loss of pension if they take a part time job
a)
an equivalence scale
b)
vertical equity
c)
a poverty gap
d)
a poverty trap
9.
Indexation of pensions means that they are
a)
means tested for income and assets
b)
adjusted for changes in average weekly earners
c)
kept at a rate just above the poverty line
d)
increased regularly in line with CPI increases
10.
Relative poverty is a situation in which
a)
poverty in one country compated with that of another
b)
the incidence of poverty is measured relative to a standard unit of measure
c)
people level of poverty is measured relative to their income distribution
d)
deprivation is extreme because people do not have access to basic needs
11.
Which of the following statements is true for Australia in relation to the distribution of income and wealth
a)
the inequality in wealth has been stable in the last 10 years but income equality has fallen
b)
income is less evenly distributed then wealth
c)
wealth is less evenly distributed than income
d)
income inequality has been stable in the last 10 years but wealth inequality has risen
12.
Why do people in cities tend to have higher average incomes than people living in rural areas
a)
employees in major cities face greater competition for jobs
b)
rural areas have higher unemployment rates than cities
c)
Businesses pay higher wages to workers to entice them to work in rural areas
d)
rural workers have a higher livel of skill and education than counterparts in the city
13.
Income inequality in Australia would widen if this policy were introduced
a)
a decrease in interest rates
b)
deregulation of the labour market
c)
a lowering of the age of the aged pension
d)
the introduction of increased superannuation rates
14.
Equity in the distribution of personal income does not mean
a)
everyone should have an equal amount of money as income
b)
everyone should be able to have acess to basic needs
c)
the elimination of poverty
d)
the rich should be taxed higher than people on lower income
15.
The market economy does not have income and wealth equality because
a)
high employment levels may occur at various times
b)
some goods are too expensive to obtain for workers on a wage
c)
lower income workers are unable to save as high a proportion of their income as salaried professionals
d)
All of the Above
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