ECONOMICS
INCOME DISTRIBUTION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A trickle-down effect
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Positive effect to an unequal distribution of income and wealth
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Negative effect to an unequal distribution of income and wealth
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Either A or B
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None of the above
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Explanation:
Detailed explanation-1: -Trickle down economics is a term used to describe the belief that if high-income earners gain an increase in salary, then everyone in the economy will benefit as their increased income and wealth filter through to all sections in society.
Detailed explanation-2: -The trickle-down theory postulates that the benefits from tax cuts, capital gains, dividends, and even looser regulations on corporations and wealthy individuals would eventually flow down to benefit middle-and low-income earners.
Detailed explanation-3: -Economic. Less equal societies have less stable economies. High levels of income inequality are linked to economic instability, financial crisis, debt and inflation.
There is 1 question to complete.