#1
Which of the following is a measure of economic inequality?
Gini coefficient
ExplanationThe Gini coefficient is a statistical measure of economic inequality, representing the distribution of income or wealth among a population.
#2
What does the Gini coefficient measure?
Income inequality
ExplanationThe Gini coefficient specifically measures the extent of income inequality within a society.
#3
What is the Lorenz curve used to represent in economics?
Income distribution
ExplanationThe Lorenz curve is a graphical representation of income distribution, showing the cumulative share of total income received by the bottom x% of the population.
#4
In economics, what is the Gini index used to quantify?
Income inequality
ExplanationThe Gini index quantifies the degree of income inequality in a society, with a higher index indicating greater inequality.
#5
Which of the following is a consequence of income inequality?
Decreased social cohesion
ExplanationIncome inequality can lead to decreased social cohesion, as disparities in wealth and opportunities may result in social unrest and tensions.
#6
What is the Kuznets curve often used to analyze?
Relationship between income inequality and economic growth
ExplanationThe Kuznets curve is a theory suggesting that as a country develops, income inequality first increases and then decreases, analyzing the relationship between income inequality and economic growth.
#7
What is the relationship between economic growth and income inequality according to the Kuznets hypothesis?
Initially, income inequality increases, then decreases
ExplanationAccording to the Kuznets hypothesis, in the process of economic development, income inequality tends to first increase and then decrease.
#8
What is meant by the term 'structural inequality'?
Inequality that arises from systemic biases and social structures
ExplanationStructural inequality refers to disparities in opportunities and outcomes that arise from systemic biases and social structures.