Question

What is a common way income inequality is presented?

1. Income inequality is often shown as the percentage of income received by a specific percentage of the population.
2. Income inequality is exclusively represented by the Gini coefficient.
3. Income inequality is usually presented as the absolute income of the richest individual.

• A. 3 only
• B. 1 only
• C. All
• D. 2 only

Answer 1

Answer:

B. 1 only

• Income inequality is often presented as percentage of income to a percentage of population

• The causes of income inequality could vary by region, gender, education and social status.

• There is a lack of consensus among economists on the implications of income disparity and on whether it is ultimately positive or negative.