MEASURING INEQUALITY
This Lorenz Curve line represents perfect equality.
What is the line of equality?
The Lorenz curve can measure inequity of i______ or w______. What are the missing words?
What are income and wealth?
High inequality can reduce access to this, limiting future earning potential.
What is education?
These payments are made by the government to eligible households such as JobSeeker recipients.
What are transfer payments?
This term describes the gap between high-income and low-income Australians.
What is income inequality?
This coefficient measures income inequality on a scale from 0 to 1
What is the Gini coefficient?
When workers with university qualifications earn more than unskilled workers, inequality is being driven by this factor.
What is education (or differences in human capital)?
When low-income households struggle to afford healthcare, inequality can affect this.
What is health (or health outcomes)?
This Australian government payment supports unemployed individuals seeking work.
What is JobSeeker?
Are heading required for your analytical essay?
No
A Gini coefficient closer to 1 indicates this.
What is greater income inequality?
Ownership of houses, shares and businesses can increase inequality through this type of income.
What is wealth income (or investment income/unearned income)?
Large income gaps may reduce this by limiting opportunities for disadvantaged groups.
What is social mobility?
Government spending on schools and hospitals aims to improve this.
What is equity?
What is required for analysis in your exam (need at least 2/3rds to get the points)
Identify and explain relevant cause and effects (relationships)
Identify and explain relevant trends in data
Perceptive selection and use of relevant seen and unseen data and information to support the analysis
This curve graphically shows the distribution of income across a population
What is the Lorenz Curve?
Technological change often increases demand for workers with these skills.
What are high-level or skilled labour skills?
Name an advantage of inequality
it can drive economic growth by incentivizing innovation, hard work, and entrepreneurship.
Philanthropy and Charitable Giving
Cultural and Artistic Patronage
A tax system where higher-income earners pay a larger percentage of income.
What is a progressive tax system?
The lowest 20% of income earners are often referred to as this income quintile.
What is the bottom quintile?
If the poorest 20% receive only 5% of income, this suggests the economy has this characteristic.
What is income inequality (or an unequal distribution of income)?
The idea that wealth generates more wealth over time helps explain this growing gap.
What is wealth inequality?
Economists argue that excessive inequality can slow this long-term economic outcome.
What is economic growth?
Economists often debate the trade-off between equity and this economic objective.
What is efficiency?
What is required for evaluation (need at least 2/3rds to get the points)
• perceptive use of relevant economic criteria to make a decision about an economic outcome
• discerning synthesis of economic ideas and perspectives derived from the analysis to support the decision
• critical economic reasoning derived using reliable evidence from seen and unseen sources to justify the decision