#1
Which of the following is not a factor affecting income distribution?
Inflation rate
ExplanationInflation rate does not directly impact income distribution.
#2
Which of the following is a characteristic of income inequality?
Unequal distribution of wealth
ExplanationIncome inequality is characterized by an uneven distribution of wealth among individuals.
#3
Which factor is not typically considered a determinant of income distribution?
Ethnicity
ExplanationEthnicity is not usually considered a primary determinant of income distribution.
#4
Which of the following is not a policy approach to address income inequality?
Flat tax system
ExplanationImplementing a flat tax system is not typically a policy approach to tackle income inequality.
#5
What is the term for the unequal distribution of wealth within a society?
Wealth gap
ExplanationWealth gap refers to the disparity in wealth distribution among members of a society.
#6
Which of the following factors can contribute to wage differentials?
All of the above
ExplanationVarious factors such as education, experience, and demand-supply dynamics can contribute to wage differentials.
#7
Which economic theory suggests that in a free market economy, wages will be driven down to subsistence levels?
Classical economics
ExplanationClassical economics theorizes wage levels will naturally reach subsistence levels in a free market.
#8
Which factor contributes to wage discrimination based on gender?
Gender stereotypes
ExplanationWage discrimination based on gender is influenced by prevalent gender stereotypes.
#9
Which of the following is a measure of income inequality?
Gini coefficient
ExplanationThe Gini coefficient quantifies the degree of income inequality within a population.
#10
What is the term for the percentage of total income earned by a specific percentage of the population?
Income percentile
ExplanationIncome percentile refers to the portion of total income earned by a specified percentage of the population.
#11
Which economic concept suggests that in some situations, the rich get richer while the poor get poorer?
Income concentration
ExplanationIncome concentration implies a scenario where wealth accumulates among the rich while diminishing among the poor.
#12
Which economic theory argues that the government should play an active role in reducing income inequality?
Socialism
ExplanationSocialism advocates for government intervention to mitigate income inequality.
#13
According to human capital theory, which of the following enhances an individual's earning potential?
Investment in education
ExplanationInvesting in education is believed to increase an individual's earning potential according to human capital theory.
#14
Which term describes a situation where individuals are trapped in poverty due to lack of opportunities?
Structural poverty
ExplanationStructural poverty refers to poverty caused by systemic barriers and lack of opportunities rather than individual factors.
#15
Which of the following factors contributes to income polarization?
Growth of high-skill and low-skill jobs
ExplanationThe growth of high-skill and low-skill jobs can exacerbate income polarization within a society.