5.1.2 Income Inequality

• Income inequality refers to the extent to which income is distributed unevenly among the individuals or households in a population. It can be measured using the Gini coefficient
• The Gini coefficient ranges from -1 to 1.

  False
• Globalization increases competition and may lead to lower wages for low-skilled workers
• Technological advancements can reduce income inequality by creating more jobs.

  False
• Match the social and economic effects of income inequality with their descriptions:

  Increased social unrest ↔️ Disparities lead to dissatisfaction and protests

  Reduced social mobility ↔️ Wealth concentration hinders upward movement

  Health and social problems ↔️ Stress and deprivation negatively impact well-being
• Order the following countries from lowest to highest income inequality based on their Gini coefficients:

  1️⃣ Denmark (0.25)

  2️⃣ France (0.33)

  3️⃣ United States (0.45)

  4️⃣ Brazil (0.53)
• Regressive tax policies can reduce income inequality.

  False
• The Gini coefficient ranges from 0, which represents perfect equality, to 1, which represents complete inequality.
• Globalization lowers wages for low-skilled workers due to increased competition
• Match the country with its level of income equality and associated effects:

  Denmark ↔️ Low income inequality, high social mobility

  United States ↔️ High income inequality, significant health disparities

  Brazil ↔️ Very high income inequality, poor health indicators
• Reduced social mobility is a direct effect of income inequality.
• What are three effects of income inequality?

  Increased social unrest ||| Reduced social mobility ||| Health problems
• Denmark has a Gini coefficient of 0.25
• Denmark has low social unrest and high social mobility.
• What is the Gini coefficient of France?

  0.33
• The United States has a Gini coefficient of 0.45
• Brazil has poor overall health indicators due to high income inequality.
• Match the income inequality term with its definition:

  Income inequality ↔️ Uneven distribution of income

  Gini coefficient ↔️ Measures income inequality

  Perfect equality ↔️ Gini coefficient of 0

  Complete inequality ↔️ Gini coefficient of 1
• What is the Gini coefficient of Denmark?

  0.25
• The United States has a Gini coefficient of 0.45
• What does the Gini coefficient measure?

  Income inequality
• The Gini coefficient ranges from 0 (perfect equality) to 1 (complete inequality
• What is the Gini coefficient of Denmark?

  0.25
• The United States has a higher Gini coefficient than France.
• Match the country with its Gini coefficient:

  Denmark ↔️ 0.25

  France ↔️ 0.33

  United States ↔️ 0.45
• Order the countries from lowest to highest Gini coefficient:

  1️⃣ Denmark

  2️⃣ France

  3️⃣ United States

  4️⃣ Brazil
• Brazil has a Gini coefficient of 0.53
• Which country has a low Gini coefficient indicating more equal income distribution?

  Denmark
• Brazil's high Gini coefficient indicates greater income equality than the United States.

  False
• How does globalization affect income inequality?

  Lowers wages for low-skilled workers
• Technological advancements, particularly automation, can displace manual labor and concentrate wealth
• Regressive taxes help reduce income inequality.

  False
• What is one effect of income inequality on society?

  Increased social unrest
• Income inequality reduces social mobility
• Denmark's low Gini coefficient is associated with low social unrest.
• Which country has high social unrest due to income inequality?

  United States
• Match the income inequality measure with its description:

  Gini Coefficient ↔️ Statistical measure from 0 to 1

  Lorenz Curve ↔️ Graph showing cumulative income distribution

  Income Percentile Ratios ↔️ Focuses on extremes in income distribution
• What does area A represent in the Gini coefficient formula?

  Area between perfect equality and Lorenz curve
• Progressive taxation involves taxing higher incomes at a higher rate
• What is one benefit of minimum wage laws?

  Ensures fair compensation