Economic Inequality: Causes, Consequences, and Solutions

Question 1

Which of the following is NOT a primary contributing factor to economic inequality in the United States?

Accepted Answer

Minimum wage

Answer

Wealth gap

Answer

Discrimination

Answer

Globalization

Question 2

Which of the following government policies is typically advocated to reduce economic inequality?

Accepted Answer

Minimum wage increases

Answer

Tax cuts for the wealthy

Answer

Privatization of public services

Answer

Deregulation of industries

Question 3

What is the main purpose of the minimum wage?

Accepted Answer

To ensure a living wage for workers

Answer

To reduce unemployment

Answer

To stimulate economic growth

Answer

To eliminate poverty

Question 4

Which of the following is NOT an argument in favor of raising the minimum wage?

Accepted Answer

Creates job losses

Answer

Reduces poverty

Answer

Boosts economic activity

Answer

Increases worker productivity

Question 5

Which of the following is a criticism of trickle-down economics?

Accepted Answer

It worsens economic inequality

Answer

It stifles economic growth

Answer

It increases inflation

Answer

It reduces unemployment

Question 6

Which measure is NOT commonly used to assess economic inequality?

Accepted Answer

Education levels

Answer

Wealth gap

Answer

Gini coefficient

Answer

Income distribution

Question 7

The impact of globalization on economic inequality is:

Accepted Answer

Mixed, depending on various factors

Answer

Universally positive

Answer

Universally negative

Answer

Insignificant

Question 8

The Gini coefficient is a measure of:

Accepted Answer

The income disparity between the wealthiest and poorest individuals

Answer

The median income of a society

Answer

The government's share of total wealth

Answer

The rate of inflation

Question 9

The primary objective of progressive taxation is to:

Accepted Answer

Promote economic equality

Answer

Increase government revenue

Answer

Stimulate economic growth

Answer

Reduce government debt

Question 10

What term describes the widening gap between the wealthiest and poorest individuals in a society?

Accepted Answer

Wealth disparity

Answer

Economic mobility

Answer

Income inequality

Answer

Social stratification

Question 11

Economic inequality can lead to several adverse consequences. Which of the following is NOT a potential negative effect of economic inequality?

Accepted Answer

Improved economic growth

Answer

Increased social unrest

Answer

Higher rates of crime

Answer

Reduced access to healthcare

Question 12

The minimum wage is a government-mandated minimum hourly wage that employers are required to pay their workers. What is the primary objective of the minimum wage?

Accepted Answer

To alleviate poverty

Answer

To stimulate economic growth

Answer

To protect workers from unfair treatment

Answer

To increase job opportunities

Question 13

Globalization has had a significant impact on economic inequality. Which of the following is NOT an effect of globalization on economic inequality?

Accepted Answer

Decreased international trade

Answer

Increased competition for low-skill jobs

Answer

Increased demand for skilled workers

Answer

Reduced government regulations

Question 14

A progressive tax system is characterized by:

Accepted Answer

Lower earners paying a higher percentage of their income in taxes

Answer

Higher earners paying a lower percentage of their income in taxes

Answer

All earners paying the same percentage of their income in taxes

Answer

Taxes based on wealth rather than income

Question 15

How does the minimum wage impact economic inequality?

Accepted Answer

Decreases income disparity between high- and low-income earners

Answer

Increases unemployment rates among low-skilled workers

Answer

Has no significant effect on economic inequality

Answer

Exacerbates the wealth gap between the rich and the poor

Question 16

Explain the concept of the 'wealth gap' and how it differs from income inequality.

Accepted Answer

Wealth gap measures asset ownership, while income inequality measures earnings

Answer

Wealth gap is a more precise indicator of inequality than income inequality

Answer

Wealth gap is only an issue in developing countries

Answer

Wealth gap has no impact on economic inequality

Question 17

Define the minimum wage.

Accepted Answer

The lowest hourly wage employers can legally pay

Answer

The average wage earned by workers in a particular industry

Answer

The wage at which labor demand equals supply

Answer

The wage typically paid to entry-level workers

Question 18

Which factor does NOT significantly contribute to economic inequality in the United States?

Accepted Answer

Increased access to higher education

Answer

Stagnant wages

Answer

Tax policies favoring the wealthy

Answer

Corporate lobbying

Question 19

Identify a potential negative consequence of economic inequality.

Accepted Answer

Reduced economic growth

Answer

Increased social mobility

Answer

Improved access to healthcare

Answer

Decreased poverty

Question 20

The primary purpose of the minimum wage is to:

Accepted Answer

Guarantee a just wage for all workers

Answer

Stimulate economic growth

Answer

Reduce unemployment rates

Answer

Regulate the size of the labor market

Question 21

Which of the following has contributed to increased income disparity in the United States?

Accepted Answer

Globalization and technological advancements

Answer

Investment in affordable housing

Answer

Government policies favoring low-income earners

Answer

Raising taxes on the wealthy

Question 22

To alleviate income inequality, which of the following has been proposed as a potential measure?

Accepted Answer

Raising the minimum wage

Answer

Providing tax cuts to the most affluent individuals

Answer

Rolling back regulations on businesses

Answer

Decreasing funding for affordable healthcare

Question 23

The psychological concept in which individuals perceive their economic situation as inferior to others is known as:

Accepted Answer

Relative deprivation

Answer

Economic anxiety

Answer

Income disparity

Answer

Social exclusion

Question 24

Which of the following is considered a key factor in the widening economic gap in the United States?

Accepted Answer

Discrimination against certain groups

Answer

Increased access to higher education

Answer

Investment in infrastructure projects

Answer

Expansion of social welfare programs

Question 25

Which policy proposal aims to address economic inequality by improving access to education and job training?

Accepted Answer

Expanding educational opportunities

Answer

Raising the minimum wage

Answer

Lowering taxes on businesses

Answer

Cutting government spending

Question 26

Who is most likely to experience the negative consequences of economic inequality?

Accepted Answer

Low-income families

Answer

High-income earners

Answer

Government employees

Answer

Business owners

Question 27

How does economic inequality impact the stability of the economy?

Accepted Answer

It can destabilize the financial system and lead to economic crises

Answer

It reduces government debt and spending

Answer

It fosters innovation and technological advancement

Answer

It stimulates economic growth and job creation

Question 28

What is the primary purpose of the minimum wage?

Accepted Answer

To set a legal floor for wages, protecting low-skilled workers from exploitation

Answer

To incentivize workers to acquire higher education and skills

Answer

To reduce unemployment rates among marginalized populations

Answer

To provide financial assistance to businesses struggling to pay their employees

Question 29

Which of the following accurately reflects the relationship between education and economic inequality?

Accepted Answer

Higher education levels generally correlate with higher incomes, while lower education levels often lead to lower incomes

Answer

The benefits of higher education are exclusive to graduates of elite institutions

Answer

Education has no significant impact on economic outcomes, regardless of an individual's socioeconomic background

Answer

The relationship between education and economic inequality remains the same across all racial and gender demographics

Question 30

How could automation and technological advancements potentially affect economic inequality?

Accepted Answer

Increased productivity and income disparity

Answer

Increased job opportunities and reduced job loss

Answer

Lower living costs and better access to essential services

Question 31

Which of the following is NOT a factor that contributes to economic inequality in the United States?

Accepted Answer

Universal healthcare

Answer

Income inequality

Answer

Wealth inequality

Answer

Discrimination and unequal access to education and employment opportunities

Question 32

What is a significant consequence of severe economic inequality in a society?

Accepted Answer

Increased social unrest and political instability

Answer

Accelerated economic growth and innovation

Answer

Improved educational outcomes for all citizens

Answer

Enhanced social cohesion and harmony

Question 33

Which of the following best defines the term 'wealth gap'?

Accepted Answer

The substantial difference in the total assets and financial resources between the richest and poorest individuals or groups in a society

Answer

The disparity in income earned by the highest and lowest income earners over a specific period

Answer

The unequal distribution of educational opportunities and resources among different socioeconomic backgrounds

Question 34

How does globalization play a role in shaping economic inequality?

Accepted Answer

It can intensify competition in the labor market, leading to lower wages for low-skilled workers

Answer

It promotes economic growth and job creation for all workers

Answer

It reduces income inequality by facilitating the upward mobility of low-income earners

Question 35

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

Accepted Answer

Reduced access to healthcare and education

Answer

Reduced crime rates

Answer

Increased social cohesion

Answer

Increased political stability

Question 36

A progressive tax system is defined by:

Accepted Answer

Individuals with higher incomes pay a higher percentage of their income in taxes.

Answer

All individuals pay the same percentage of their income in taxes.

Answer

Individuals with lower incomes pay a higher percentage of their income in taxes.

Question 37

According to supporters of economic inequality, it is argued to:

Accepted Answer

Incentivize innovation and economic growth.

Answer

Reduce poverty

Answer

Create a more just society

Answer

Promote equality of opportunity

Question 38

Which of the following is not a major cause of economic inequality in the United States?

Accepted Answer

Genetic differences

Answer

Unequal access to education

Answer

Discrimination

Answer

Tax loopholes

Question 39

A potential consequence of severe economic inequality is:

Accepted Answer

Increased social unrest

Answer

Improved educational outcomes

Answer

Reduced inflation

Answer

Lower economic growth

Question 40

The term used to describe the difference between the incomes of the richest and poorest individuals in a society is:

Accepted Answer

Wealth gap

Answer

Social mobility

Answer

Income disparity

Answer

Economic stratification

Question 41

Which of the following policies aims to reduce income inequality?

Accepted Answer

Progressive taxation

Answer

Regressive taxation

Answer

Sales tax

Answer

Flat tax

Question 42

Which group is more likely to experience economic hardship in the United States?

Accepted Answer

People of color

Answer

Homeowners

Answer

College graduates

Answer

White collar workers

Question 43

Globalization can lead to:

Accepted Answer

Job losses and downward wage pressure for low-skilled workers.

Answer

Always benefiting all workers.

Answer

Only impacting developing countries.

Question 44

A concern raised about raising the minimum wage is:

Accepted Answer

Potential job losses for low-skilled workers.

Answer

Always being beneficial for workers.

Answer

Only affecting businesses.

Answer

Having no impact on the economy.

Question 45

What is the role of education in addressing economic inequality?

Accepted Answer

It can provide opportunities for upward mobility.

Answer

It only benefits the wealthy.

Answer

It worsens economic inequality.

Answer

It has no impact on economic inequality.

Question 46

Which of the following is a potential benefit of economic inequality?

Accepted Answer

Incentivizing innovation and economic growth.

Answer

Reducing poverty

Answer

Improving educational outcomes

Answer

Creating a more just society

Question 47

What is the primary goal of policies aimed at reducing economic inequality?

Accepted Answer

Creating a more equitable distribution of wealth and income.

Answer

Punishing the wealthy

Answer

Eliminating all economic inequality

Question 48

Which of the following is a commonly used measure of economic inequality?

Accepted Answer

Gini coefficient

Answer

GDP per capita

Answer

Unemployment rate

Question 49

How has globalization generally impacted economic inequality in the United States?

Accepted Answer

Increased inequality due to outsourcing and wage stagnation

Answer

Had minimal impact on overall economic inequality

Answer

Decreased inequality due to increased global competition

Question 50

What is a potential consequence of a large wealth gap in a society?

Accepted Answer

Reduced economic mobility and social instability

Answer

Lower crime rates and improved public health

Answer

Greater investment in education and infrastructure

Answer

Increased innovation and entrepreneurial activity

Question 51

Which of the following is NOT a commonly proposed policy solution to address income inequality?

Accepted Answer

Eliminating all forms of taxation

Answer

Strengthening social safety net programs

Answer

Expanding access to affordable education

Answer

Raising the minimum wage

Question 52

How does the minimum wage in the United States compare to the cost of living in many areas?

Accepted Answer

It often falls short of covering basic living expenses

Answer

It exceeds the cost of living in most parts of the country

Answer

It is generally sufficient to maintain a comfortable lifestyle

Question 53

Which demographic group in the United States experiences the highest poverty rate?

Accepted Answer

Children

Answer

Middle-aged individuals

Answer

Elderly (65+)

Answer

Working-age adults

Question 54

What is intergenerational economic mobility?

Accepted Answer

The ability of individuals to achieve a higher economic status than their parents

Answer

The impact of economic recessions on different generations

Answer

The movement of individuals between different income brackets within their lifetime

Question 55

How can automation and technological advancements contribute to economic inequality?

Accepted Answer

By displacing workers in certain industries and increasing demand for highly skilled labor

Answer

By creating more job opportunities and boosting overall economic growth

Answer

By reducing the need for education and training in the workforce

Question 56

What is the difference between wealth and income?

Accepted Answer

Wealth refers to accumulated assets, while income is the flow of money earned over a period

Answer

Wealth and income are essentially the same concept

Answer

Income refers to assets, while wealth is the flow of money earned

Question 57

Which of the following is an example of a progressive tax policy?

Accepted Answer

A system where higher earners pay a larger percentage of their income in taxes

Answer

A flat tax rate where everyone pays the same percentage regardless of income

Answer

A sales tax on essential goods that disproportionately affects low-income earners