Economic Inequality and Redistribution Quiz
Test your knowledge on income inequality, redistribution, and economic theories with these insightful questions and answers.
#1
Which of the following measures is commonly used to represent economic inequality?
Gini coefficient
Inflation rate
Gross Domestic Product (GDP)
Unemployment rate
#2
What is the primary aim of progressive taxation?
To tax all income at the same rate
To tax higher incomes at a higher rate
To tax lower incomes at a higher rate
To eliminate taxation altogether
#3
Which economic theory suggests that economic inequality is necessary for stimulating investment and growth?
Keynesian economics
Trickle-down economics
Marxian economics
Behavioral economics
#4
Which economic indicator often correlates with higher levels of economic inequality?
Higher median household income
Higher poverty rate
Lower unemployment rate
Stable income distribution
#5
Which of the following is NOT a potential consequence of high economic inequality?
Social unrest
Higher economic growth
Political instability
Reduced social mobility
#6
What is a common argument against implementing universal basic income (UBI) as a policy to address economic inequality?
It encourages entrepreneurship
It reduces poverty
It discourages work
It promotes economic growth
#7
Which factor contributes to the persistence of economic inequality across generations?
Access to education
Social mobility
Government policies
Income tax rates
#8
What is meant by the term 'income mobility' in the context of economic inequality?
The ability of individuals to maintain a consistent income level over time
The movement of individuals between income quintiles over time
The stability of income distribution within a society
The correlation between income and education level
#9
Which of the following is an example of regressive taxation?
Sales tax
Progressive income tax
Property tax
Corporate tax
#10
In the context of economic inequality, what does the term 'redistribution' refer to?
The process of wealth being transferred from the government to individuals
The process of wealth being transferred from lower-income to higher-income individuals
The process of reallocating wealth through government policies
The process of wealth being transferred from higher-income to lower-income individuals
#11
Which economic theory suggests that economic inequality arises due to differences in the ownership of productive resources?
Keynesian economics
Trickle-down economics
Marxian economics
Monetarist economics
#12
What is the 'Matthew effect' in the context of economic inequality?
The tendency for the rich to become richer and the poor to become poorer
The equal distribution of wealth across society
The elimination of economic inequality through government intervention
The fluctuation of income levels over time
#13
Which economic concept suggests that individuals maximize utility by weighing the benefits and costs of each action, including charitable giving?
Rational choice theory
Classical economics
Supply-side economics
Keynesian economics
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