Scribd
Upload
443 views2 pages

MCQs - Wealth and Income Inequality

The document contains 6 multiple choice questions about measures of wealth and income inequality such as the Gini coefficient, policies to achieve more equal income distribution like progressive taxation, and consequences of more equitable distribution of income and wealth like earlier retirement for workers. It provides definitions and examples to help understand key concepts in wealth and income inequality.

Uploaded by

Nikhil Adhavan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
443 views2 pages

MCQs - Wealth and Income Inequality

The document contains 6 multiple choice questions about measures of wealth and income inequality such as the Gini coefficient, policies to achieve more equal income distribution like progressive taxation, and consequences of more equitable distribution of income and wealth like earlier retirement for workers. It provides definitions and examples to help understand key concepts in wealth and income inequality.

Uploaded by

Nikhil Adhavan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 2

+923443903583 Wealth and Income Inequality – MCQ Topical @adilusmanzoberi

1. What is a Gini coefficient?


A) a measure of the extent of wealth inequality in a country
B) a measure of the extent of income inequality in a country
C) the difference in income between the rich and poor in a country
D) the difference between a country’s average income and the international poverty line

2. The table shows the Gini coefficients for four countries in Sub-Saharan Africa
Country Gini coefficient
Botswana 60.5
Zambia 57.5
Central African Republic 43.6
Tanzania 37.6

Use the data in the table to say which of these statements is correct.
A) The income distribution is more equal in Botswana than in Zambia
B) Tanzania has the lowest income in the group
C) The income distribution is more equal in Tanzania than in the Central African Republic
D) Poverty is more widespread in Botswana than in Tanzania

3. The government of a middle-income country is reviewing its tax system to give a more equal
distribution of income. The current arrangements are:

 no income tax is paid where annual earnings are below $5000


 the tax rate increases more than in proportion to incomes above $5000
 there is a 5% general sales tax
 exemptions from the sales tax apply to necessities.
Which of the combinations below will help the government to achieve its objective of a more equal
distribution of income?
Income Tax Sales Tax
A) Increase tax-free allowance Increase tax rate
B) Lower tax-free allowance Increase the number of exempt goods
C) Increase top rate of tax Lower tax rate
D) Lower top rate of tax Reduce the number of exempt goods
+923443903583 Wealth and Income Inequality – MCQ Topical @adilusmanzoberi

4. Which of these policies would be most effective in achieving a more equal distribution of wealth?
A) a progressive income tax system
B) an increase in the minimum wage rate
C) providing universal benefits
D) a new tax on property ownership

5. The state provision of which of these services is most likely to lead to an improvement in the
distribution of income in a lower-middle-income country?
A) free primary education for up to 11 years
B) free university education
C) free child vaccinations
D) free meals for the elderly

6. A more equitable distribution of income and wealth is likely to lead to which of the following
consequences for an economy?
A) Rich people will leave the country.
B) A budget deficit is required to pay for additional government spending.
C) Workers will be able to retire earlier.
D) People will be better motivated to work harder to improve the standard of living.

You might also like