1
Q
Income inequality
A
when the best paid workers take home more income than the rest of the country’s workers
2
Q
Lorenz curve axis
A
- y-axis - cumulative percentage of income
- x-axis - cumulative percentage of population
3
Q
Diagonal line called?
A
perfect income equality
4
Q
What does the lorenz curve do?
A
measures income inequality across countries
5
Q
If curve closer to diagonal line…
A
less income inequality
6
Q
The higher the gini coefficient…
A
the higher the income inequality
7
Q
Gini coefficient of 0
A
perfect income equality
8
Q
Wealth inequality
A
when wealth is shared unequally between a population
9
Q
Changes in inequality
A
- minimum wage rates
- assortative mating
- social benefits and tax
- ‘r>g’ hypothesis
- inheritance
Final Macro 2
flashcards
Decks in class (25)
# Cards
-
Specialisation and Trade6
-
Globalisation8
-
Terms of Trade7
-
Restrictions on Free Trade5
-
Trading Blocs10
-
The WTO4
-
Patterns of Trade1
-
Balance of Payments 2.013
-
Exchange Rates 2.010
-
Exchange Rate Systems0
-
Poverty5
-
Inequality9
-
Capitalism, Growth and Inequality0
-
E+D Economies - Education and Skills4
-
E+D Economies - Infrastructure4
-
E+D Economies - Health4
-
E+D Economies - Population Growth4
-
E+D Economies - Low Savings4
-
E+D Economies - Corruption4
-
E+D Economies - Landlocked Countries4
-
E+D Economies - Infant Industries6
-
E+D Economies - Price Instability3
-
E+D Economies - Foreign Currency Gaps4
-
E+D Economies - Prebisch Singer Hypothesis3
-
5 types of market failure in financial sector1
