#1
Which measure is commonly used to quantify economic inequality?
Gini coefficient
ExplanationGini coefficient is a statistical measure representing the distribution of income or wealth within a population.
#2
What does the Gini coefficient value of 0 represent?
Perfect equality
ExplanationA Gini coefficient value of 0 represents a situation where income or wealth is distributed equally among the population.
#3
Which factor is NOT typically associated with economic inequality?
Inflation rate
ExplanationInflation rate is a measure of the general rise in prices and is not directly related to economic inequality.
#4
What is a potential consequence of high economic inequality?
Increased poverty rates
ExplanationHigh economic inequality often leads to increased poverty rates due to unequal distribution of resources.
#5
Which region of the world generally exhibits higher levels of income inequality?
North America
ExplanationNorth America is often cited for its high levels of income inequality compared to other regions.
#6
What is the term for the phenomenon where the rich become richer while the poor become poorer?
Economic polarization
ExplanationEconomic polarization refers to the widening gap between the wealthy and the poor, leading to increased inequality.
#7
Which of the following policies aims to reduce economic inequality by redistributing wealth?
Universal basic income
ExplanationUniversal basic income involves providing all citizens with a regular, unconditional sum of money, thus reducing wealth inequality.
#8
Which philosopher is often associated with the concept of distributive justice in the context of economic inequality?
John Rawls
ExplanationJohn Rawls is known for his theory of justice as fairness, which addresses economic inequality and social justice.
#9
What is the term for the economic concept where individuals or groups are unfairly treated in terms of their access to resources and opportunities?
Economic discrimination
ExplanationEconomic discrimination refers to biased treatment based on economic factors, limiting access to resources and opportunities.
#10
According to the Pareto principle, what percentage of the population typically holds a disproportionate amount of wealth?
20%
ExplanationThe Pareto principle suggests that roughly 20% of the population holds 80% of the wealth, indicating significant wealth inequality.
#11
Which economic phenomenon refers to the situation where individuals with higher incomes tend to spend a smaller proportion of their income?
Income elasticity
ExplanationIncome elasticity refers to the responsiveness of consumer spending to changes in income, often higher for lower-income groups.
#12
What term describes a situation where the wealth and income of a society are concentrated in a small portion of the population?
Plutocracy
ExplanationPlutocracy describes a society where power and influence are disproportionately held by the wealthy.