Inequality

Question 1

What is income inequality?

Answer 1

when the best paid workers take home more income than the rest of a country’s workers.

Question 2

What are the axis for the lorenz curve?

Answer 2

y = cumulative percentage of income
x = cumulative percentage of population

Question 3

The closer our lorenz curve is to the line of perfect income equality…

Answer 3

the more equal the country’s incomes are

Question 4

Larger the gini coefficient

Answer 4

the greater the income inequality

Question 5

What is wealth inequality?

Answer 5

when assets are shared unequally between a population

Question 6

What are the factors that influence inequality?

Answer 6

minimum wage rates
assortative mating
social benefits and tax
the ‘r>g’ hypothesis
inheritance

Question 7

What values are ‘r’ and ‘g’?

Answer 7

r = 5.3%
g = 3.8%