ECONOMICS
INCOME DISTRIBUTION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Negative effect to an unequal distribution of income and wealth
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Positive 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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Detailed explanation-1: -Economic. Less equal societies have less stable economies. High levels of income inequality are linked to economic instability, financial crisis, debt and inflation.
Detailed explanation-2: -Some of key factors behind the increase in within-country income inequality noted in the literature include technological progress, globalization, commodity price cycles, and domestic economic policies such as redistributive fiscal policies, labor and product market policies.
Detailed explanation-3: -The higher the average per-capita consumption expenditure, the lower the headcount ratio, or poverty. So, if there is a reduction in per-capita expenditure, the higher the poverty.
Detailed explanation-4: -What Is Income Inequality? Income inequality is how unevenly income is distributed throughout a population. The less equal the distribution, the higher income inequality is. Income inequality is often accompanied by wealth inequality, which is the uneven distribution of wealth.