#1
What is the poverty line?
The threshold below which people are considered poor
ExplanationStandard used to measure deprivation.
#2
Which factor contributes most to economic inequality?
Inheritance
ExplanationInter-generational transfer of wealth.
#3
What is the Gini coefficient used for?
Measuring income inequality
ExplanationStatistical measure of distribution.
#4
What is the relationship between economic inequality and social mobility?
They are negatively correlated
ExplanationGreater inequality often leads to lower mobility.
#5
Which demographic group is most affected by economic inequality?
Minorities
ExplanationDisproportionately impacted by systemic barriers.
#6
Which region generally has the highest income inequality?
North America
ExplanationDisparity particularly notable in this region.
#7
What is meant by the term 'wealth gap'?
The difference in assets between rich and poor
ExplanationDisparity in total accumulated assets.
#8
Which economic system tends to exacerbate economic inequality?
Capitalism
ExplanationEmphasizes private ownership and competition.
#9
What role does education play in reducing economic inequality?
It reduces economic inequality
ExplanationEducation can increase earning potential.
#10
Which of the following is NOT a measure of economic inequality?
Pareto principle
ExplanationPrinciple describing unequal distribution.
#11
What is meant by the term 'intergenerational mobility'?
The movement of individuals between different generations within a family
ExplanationAbility to move up or down the socioeconomic ladder.
#12
Which of the following policies is aimed at reducing economic inequality?
Universal basic income
ExplanationGuaranteed income regardless of employment.
#13
What is meant by the term 'income mobility'?
The ability of individuals to move between different income brackets over time
ExplanationCapacity to change earnings status over one's life.
#14
Which of the following factors contributes significantly to social mobility?
Education
ExplanationEnhances skills and job opportunities.
#15
Which of the following countries typically exhibits lower levels of economic inequality?
Sweden
ExplanationNotable for comprehensive social welfare policies.
#16
What is the main difference between income inequality and wealth inequality?
Income inequality refers to disparities in wages, while wealth inequality refers to disparities in assets.
ExplanationDistinction between earnings and accumulated resources.
#17
Which of the following is a consequence of high economic inequality?
Higher crime rates
ExplanationCorrelation between deprivation and criminal behavior.
#18
What is the primary cause of income inequality in developing countries?
Unequal distribution of resources
ExplanationLimited access to capital and opportunities.
#19
Which economic concept suggests that economic inequality may hinder economic growth?
The Kuznets curve
ExplanationInitially, inequality may rise with growth, then decline.
#20
What is meant by the term 'glass ceiling'?
A barrier preventing individuals from achieving success based on characteristics such as race or gender
ExplanationInvisible barrier impeding career advancement.
#21
Which economic indicator is often used to measure social mobility?
Intergenerational earnings elasticity
ExplanationLikelihood of moving up or down income ladder across generations.
#22
What is the role of taxation in addressing economic inequality?
Progressive taxation reduces economic inequality
ExplanationTaxing higher incomes proportionately more.
#23
Which economic theory suggests that economic inequality is necessary for progress?
Trickle-down economics
ExplanationBelief that benefits to the wealthy 'trickle down' to everyone.