income and wealth inequality

Question 1

what is income

Answer 1

a flow of money measured over a given period of time

Question 2

what is wealth

Answer 2

the sum , or stock of all your assets added together

Question 3

reasons for differential in income and wealth

Answer 3

age -the older someone is the higher the income as they
are likely to have :
-more skills and are likely to be more productive ,
-more experience so they can demand higher wages
-wealth accumulation can be greater

Question 4

education(distribution of income)

Answer 4

the more qualifications some has (alevels and degrees) the greater the earning potential of that individual is likely to be

Question 5

ownership of financial assets -through employer pension ,bonds.

Answer 5

unequal distribution ,those who own them will be better off than those who don’t (bonds)

Question 6

ownership of property(housing)

Answer 6

Those who own property will be wealthy as prices go up lead to divide in the distribution of wealth compared to those who can’t afford it

Question 7

wage differentials (distribution of income)

Answer 7

The greater the wage differentials the greater the inequality of the distribution of income will b e(role of state benefits here)