Inequality Flashcards
1
Q
What is income inequality?
A
when the best paid workers take home more income than the rest of a country’s workers.
2
Q
What are the axis for the lorenz curve?
A
y = cumulative percentage of income
x = cumulative percentage of population
3
Q
The closer our lorenz curve is to the line of perfect income equality…
A
the more equal the country’s incomes are
4
Q
Larger the gini coefficient
A
the greater the income inequality
5
Q
What is wealth inequality?
A
when assets are shared unequally between a population
6
Q
What are the factors that influence inequality?
A
minimum wage rates
assortative mating
social benefits and tax
the ‘r>g’ hypothesis
inheritance
7
Q
What values are ‘r’ and ‘g’?
A
r = 5.3%
g = 3.8%
