14 - mosaic of inequality

Question 1

why do we call some differences inequalities & some as beneficial or good?

Answer 1

• good differences encourage diversity
• inequality emanates from unfairness

Question 2

the key to fairness is

Answer 2

the equality of opportunity

Question 3

living standards depend on what type of things?

Answer 3

tangible & intangible things

Question 4

tangible things

Answer 4

material goods

Question 5

intangibles

Answer 5

freedom, health, respect, belonging

Question 6

determinants of well-being

Answer 6

• access to food, shelter, clothing, healthcare
• access to amenities and luxuries
• sense of respect from others & belonging to community
• enough time/energy for leisure
• quality of work experience
• ability to make important choices on education & other means of achievement
• quality of natural environment & extent to which it allows us to experience good health & enjoy pleasures that depend on natural surroundings

Question 7

GDP per capita

Answer 7

• GDP divided by population size
• values of goods produced in the society
• generated within Canada - companies must be in Canada

Question 8

GNP per capita

Answer 8

• Gross national product - income of nationals
• GNP divided by population size
• generated by Canadians - can be produced in other countries

Question 9

which is better to measure living standard, GDP or GNP?

Answer 9

GNP

Question 10

what is the mainstream definition of economic standards

Answer 10

GNP

Question 11

Limitations of GNP and GDP

Answer 11

• fails to consider free time
• only measures access to commodities
• prices of goods/services don’t measure their contribution to well-being
• average well-being depends on more than the average amount of income
• doesn’t consider crimes, war

Question 12

which important goods & services are not commodities & therefore GDP/GNP doesn’t consider

Answer 12

• child care, house labor
• public education, police protection

Question 13

what implementations could make GDP/GNP more accurate

Answer 13

• implementing social & political contributors
• consider used value of exchanges like housing

Question 14

how to measure income inequality

Answer 14

• rank all households or individuals by income, poorest to richest
• divide into quintiles
• calculate what % of total income each quintile receives

Question 15

income inequality in 1967 & 2014

Answer 15

1967
- top quintile = 43.8% of total income
- bottom quintile = 4.0%
2014
- top quintile = 51.2%
- bottom quintile = 3.1%

Question 16

the economy as a contributor to well-being

Answer 16

• organization of the economy affects health status of population
• structure of economy influences the extent of freedom we have for important influencing decisions
• respect we feel for one another depends on income
• sense of belonging to a group

Question 17

common way of measuring distribution of wealth

Answer 17

how each country’s wealth is owned by different segments of its population