Consequences of Economic Inequality

Description: This quiz will test your knowledge about the consequences of economic inequality.
Number of Questions: 15
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Which of the following is a common consequence of economic inequality?

  1. Increased social mobility

  2. Reduced poverty

  3. Greater income equality

  4. Social unrest


Correct Option: D
Explanation:

Economic inequality can lead to social unrest, as those who are disadvantaged may feel resentment and anger towards those who are more wealthy.

How does economic inequality affect economic growth?

  1. It promotes economic growth

  2. It hinders economic growth

  3. It has no effect on economic growth

  4. It depends on the specific context


Correct Option: D
Explanation:

The relationship between economic inequality and economic growth is complex and depends on a variety of factors, such as the level of inequality, the type of inequality, and the policies in place.

What is the Kuznets curve?

  1. A graph showing the relationship between economic inequality and economic growth

  2. A graph showing the relationship between economic inequality and social unrest

  3. A graph showing the relationship between economic inequality and poverty

  4. A graph showing the relationship between economic inequality and unemployment


Correct Option: A
Explanation:

The Kuznets curve is a graph that shows the relationship between economic inequality and economic growth. It typically shows that inequality initially increases as an economy grows, but then begins to decline as the economy continues to grow.

Which of the following is a policy that can be used to reduce economic inequality?

  1. Progressive taxation

  2. Wealth redistribution

  3. Minimum wage laws

  4. All of the above


Correct Option: D
Explanation:

All of the above policies can be used to reduce economic inequality. Progressive taxation taxes the wealthy at a higher rate than the poor, wealth redistribution transfers wealth from the wealthy to the poor, and minimum wage laws ensure that workers are paid a living wage.

What is the Gini coefficient?

  1. A measure of economic inequality

  2. A measure of economic growth

  3. A measure of poverty

  4. A measure of unemployment


Correct Option: A
Explanation:

The Gini coefficient is a measure of economic inequality that ranges from 0 to 1. A Gini coefficient of 0 represents perfect equality, while a Gini coefficient of 1 represents perfect inequality.

Which country has the highest level of economic inequality?

  1. United States

  2. China

  3. India

  4. Brazil


Correct Option: A
Explanation:

The United States has the highest level of economic inequality among developed countries. The Gini coefficient in the United States is 0.41, which is higher than the Gini coefficient in most other developed countries.

Which country has the lowest level of economic inequality?

  1. Sweden

  2. Denmark

  3. Norway

  4. Finland


Correct Option: A
Explanation:

Sweden has the lowest level of economic inequality among developed countries. The Gini coefficient in Sweden is 0.24, which is lower than the Gini coefficient in most other developed countries.

How does economic inequality affect social mobility?

  1. It increases social mobility

  2. It decreases social mobility

  3. It has no effect on social mobility

  4. It depends on the specific context


Correct Option: B
Explanation:

Economic inequality can decrease social mobility, as those who are born into wealthy families are more likely to have access to better education, healthcare, and other resources that can help them succeed in life.

How does economic inequality affect health?

  1. It improves health

  2. It worsens health

  3. It has no effect on health

  4. It depends on the specific context


Correct Option: B
Explanation:

Economic inequality can worsen health, as those who are disadvantaged may have less access to healthcare, healthy food, and other resources that can help them stay healthy.

How does economic inequality affect education?

  1. It improves education

  2. It worsens education

  3. It has no effect on education

  4. It depends on the specific context


Correct Option: B
Explanation:

Economic inequality can worsen education, as those who are disadvantaged may have less access to quality education, which can limit their opportunities in life.

How does economic inequality affect crime?

  1. It reduces crime

  2. It increases crime

  3. It has no effect on crime

  4. It depends on the specific context


Correct Option: B
Explanation:

Economic inequality can increase crime, as those who are disadvantaged may be more likely to turn to crime as a way to make money or to escape poverty.

How does economic inequality affect political participation?

  1. It increases political participation

  2. It decreases political participation

  3. It has no effect on political participation

  4. It depends on the specific context


Correct Option: B
Explanation:

Economic inequality can decrease political participation, as those who are disadvantaged may feel that their voices are not heard or that they do not have the resources to participate in the political process.

How does economic inequality affect social cohesion?

  1. It increases social cohesion

  2. It decreases social cohesion

  3. It has no effect on social cohesion

  4. It depends on the specific context


Correct Option: B
Explanation:

Economic inequality can decrease social cohesion, as those who are disadvantaged may feel resentment and anger towards those who are more wealthy, which can lead to social unrest and conflict.

How does economic inequality affect environmental sustainability?

  1. It improves environmental sustainability

  2. It worsens environmental sustainability

  3. It has no effect on environmental sustainability

  4. It depends on the specific context


Correct Option: B
Explanation:

Economic inequality can worsen environmental sustainability, as those who are disadvantaged may be more likely to engage in activities that harm the environment, such as polluting or deforestation, in order to make a living.

What are some of the challenges in addressing economic inequality?

  1. Lack of political will

  2. Lack of public awareness

  3. Lack of resources

  4. All of the above


Correct Option: D
Explanation:

All of the above challenges can make it difficult to address economic inequality. Lack of political will can prevent governments from taking action to reduce inequality, lack of public awareness can make it difficult to build support for policies to reduce inequality, and lack of resources can make it difficult to implement policies to reduce inequality.

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