Economic Inequality: Causes, Consequences, and Solutions

Question 1

Which of the following is NOT generally considered a factor that contributes to economic inequality?

Accepted Answer

Natural disasters

Answer

Discrimination

Answer

Access to education

Answer

Inheritance

Question 2

The Gini coefficient is primarily used as a measure of:

Accepted Answer

Income inequality

Answer

Education inequality

Answer

Health inequality

Answer

Wealth inequality

Question 3

Which type of taxation aims to reduce income disparities by requiring higher earners to contribute a larger percentage of their income?

Accepted Answer

Progressive taxation

Answer

Flat tax

Answer

Free market capitalism

Answer

Deregulation

Question 4

A high Gini coefficient typically indicates:

Accepted Answer

High income inequality

Answer

High wealth inequality

Answer

Low income inequality

Answer

Equal income distribution within a society

Question 5

Which of the following is a potential negative consequence of economic inequality?

Accepted Answer

Social unrest

Answer

Reduced crime rates

Answer

Improved healthcare outcomes

Answer

Increased economic growth

Question 6

The term 'economic inequality' generally refers to:

Accepted Answer

Unequal distribution of income, wealth, and opportunities

Answer

Only unequal distribution of income

Answer

Equal distribution of income and wealth

Question 7

Which characteristic is typically associated with a progressive tax system?

Accepted Answer

Higher earners pay a higher percentage of their income in taxes

Answer

Everyone pays the same percentage of their income in taxes

Answer

Lower earners pay a higher percentage of their income in taxes

Question 8

A society with significant economic inequality is more likely to experience:

Accepted Answer

Increased social tensions

Answer

Improved educational outcomes

Answer

Reduced healthcare disparities

Answer

Enhanced economic mobility

Question 9

A potential argument in favor of some degree of economic inequality is that it can:

Accepted Answer

Incentivize hard work and innovation

Answer

Reduce poverty rates

Answer

Improve access to healthcare

Question 10

The concept of economic mobility refers to the ability of:

Accepted Answer

Individuals to move up or down the economic ladder

Answer

The level of income inequality within a society

Answer

The rate at which income grows over time

Question 11

What is the primary purpose of the Gini coefficient?

Accepted Answer

To measure the level of income inequality within a population

Answer

To determine the average income of a population

Answer

To compare economic inequality across different countries

Answer

To predict future economic growth

Question 12

What is a potential negative consequence of high levels of economic inequality?

Accepted Answer

Increased social unrest and political instability

Answer

Reduced government revenue

Answer

Improved economic efficiency

Question 13

What is the central focus of the economic geography unit you are currently studying?

Accepted Answer

Understanding economic inequality, its causes, and potential solutions

Answer

Examining the distribution of natural resources around the world

Answer

Analyzing the impact of climate change on economic development

Question 14

Based on the Gini coefficient, a country with a score of 0.4 is considered:

Accepted Answer

Moderately unequal

Answer

Perfectly equal

Answer

Perfectly unequal

Answer

Highly unequal

Question 15

What is the nature of the relationship between economic inequality and economic growth?

Accepted Answer

The relationship can vary depending on the specific context and country

Answer

Economic inequality always leads to higher economic growth

Answer

Economic growth always reduces economic inequality

Answer

Economic inequality never affects economic growth

Question 16

What is a limitation of using the Gini coefficient to measure economic inequality?

Accepted Answer

It does not capture non-income forms of wealth, such as assets or property

Answer

It is only useful for comparing inequality within a single country

Answer

It is too complex and difficult to understand

Answer

It is easily manipulated by governments to present a more favorable picture

Question 17

What is the potential role of government policies in addressing economic inequality?

Accepted Answer

Governments can implement policies aimed at redistributing wealth and promoting equal opportunities

Answer

Government policies have no impact on economic inequality

Answer

Government policies always exacerbate economic inequality

Question 18

Which of the following is a significant factor contributing to economic inequality?

Accepted Answer

Differences in education and skills

Answer

Government regulation

Answer

Natural disasters

Answer

Technological advancements

Question 19

The Gini coefficient primarily measures:

Accepted Answer

Income inequality

Answer

Inflation

Answer

Economic growth

Answer

Unemployment rate

Question 20

Which of the following is NOT a recognized consequence of severe economic inequality?

Accepted Answer

Improved social mobility

Answer

Increased poverty

Answer

Reduced economic growth

Answer

Social unrest

Question 21

Which of these is a widely proposed solution to mitigate economic inequality?

Accepted Answer

Progressive taxation

Answer

Reduced government spending

Answer

Deregulation

Answer

Privatization of public services

Question 22

Which developed nation consistently ranks high in global measures of economic inequality, such as the Gini coefficient?

Accepted Answer

United States

Answer

United Kingdom

Answer

Japan

Answer

Sweden

Question 23

Which of the following is a limitation of the Gini coefficient as a measure of economic inequality?

Accepted Answer

It does not consider non-income factors affecting well-being

Answer

It is only relevant to developed countries

Answer

It is challenging to calculate accurately

Answer

It is not internationally comparable

Question 24

What is the central aim of a progressive tax system?

Accepted Answer

To reduce income inequality by taxing higher earners at higher rates

Answer

To increase government revenue

Answer

To reduce inflation

Answer

To stimulate economic growth

Question 25

A common criticism of trickle-down economics is that:

Accepted Answer

It does not effectively reduce economic inequality

Answer

It leads to high levels of inflation

Answer

It requires excessive government intervention

Answer

It is too complex to implement

Question 26

What is a significant advantage of using a Lorenz curve to represent economic inequality?

Accepted Answer

It offers a visual representation of income distribution, enabling comparisons

Answer

It is more accurate than other inequality measures

Answer

It is easier to calculate than the Gini coefficient

Answer

It is applicable only to developing countries

Question 27

Which of the following ethical principles is central to considerations of economic inequality?

Accepted Answer

Fairness and justice

Answer

Political stability

Answer

Economic efficiency

Answer

National security