The 0.01% Rule

Description: The 0.01% Rule quiz tests your understanding of the concept of the 0.01% rule, which states that the top 0.01% of earners in a society receive a disproportionately large share of the total income.
Number of Questions: 5
Created by:
Tags: economics economic inequality the 0.01% rule
Attempted 0/5 Correct 0 Score 0

What is the 0.01% rule?

  1. The top 0.01% of earners in a society receive a disproportionately large share of the total income.

  2. The top 0.01% of earners in a society pay a disproportionately large share of the total taxes.

  3. The top 0.01% of earners in a society own a disproportionately large share of the total wealth.

  4. The top 0.01% of earners in a society have a disproportionately large say in government policy.


Correct Option: A
Explanation:

The 0.01% rule is a term used to describe the fact that the top 0.01% of earners in a society receive a disproportionately large share of the total income. This means that a very small number of people are earning a very large amount of money, while the majority of people are earning much less.

What is the evidence for the 0.01% rule?

  1. Studies have shown that the top 0.01% of earners in a society have seen their incomes grow much faster than the incomes of the rest of the population.

  2. Studies have shown that the top 0.01% of earners in a society own a disproportionately large share of the total wealth.

  3. Studies have shown that the top 0.01% of earners in a society have a disproportionately large say in government policy.

  4. All of the above.


Correct Option: D
Explanation:

There is a lot of evidence to support the 0.01% rule. Studies have shown that the top 0.01% of earners in a society have seen their incomes grow much faster than the incomes of the rest of the population, that they own a disproportionately large share of the total wealth, and that they have a disproportionately large say in government policy.

What are the implications of the 0.01% rule?

  1. The 0.01% rule is a sign of a healthy economy.

  2. The 0.01% rule is a sign of a sick economy.

  3. The 0.01% rule is a sign of a fair economy.

  4. The 0.01% rule is a sign of an unfair economy.


Correct Option: D
Explanation:

The 0.01% rule is a sign of an unfair economy because it means that a very small number of people are reaping the benefits of economic growth, while the majority of people are struggling to make ends meet. This can lead to social unrest and political instability.

What can be done to address the 0.01% rule?

  1. Raise taxes on the top 0.01% of earners.

  2. Increase government spending on social programs.

  3. Strengthen labor unions.

  4. All of the above.


Correct Option: D
Explanation:

There are a number of things that can be done to address the 0.01% rule. These include raising taxes on the top 0.01% of earners, increasing government spending on social programs, and strengthening labor unions. These policies would help to redistribute wealth and income, and make the economy more fair.

What is the future of the 0.01% rule?

  1. The 0.01% rule will continue to grow.

  2. The 0.01% rule will eventually disappear.

  3. The 0.01% rule will remain the same.

  4. It is impossible to predict the future of the 0.01% rule.


Correct Option: D
Explanation:

It is impossible to predict the future of the 0.01% rule. The rule could continue to grow, it could eventually disappear, or it could remain the same. The future of the rule will depend on a number of factors, including government policy, economic conditions, and social attitudes.

- Hide questions