Reducing Inequality

Question 1

Income

Answer 1

Flow of money into a household at a given point in time

Question 2

Wealth

Answer 2

Value of assets within a household at a given point in time

Question 3

Benefits of inequality

Answer 3

Creates incentive to work
Encourages investment into businesses and work force

Question 4

Costs of inequality

Answer 4

Inequality undermines price mechanism, ignores those with no income put ppl of buying
Underconsumption of merit goods over consumption of demerit goods
Lower quality of life
Inc crime