Income Inequality Quiz

What is the definition of income inequality?

• The number of people in poverty

• The degree to which income is unevenly distributed among people in the economy

• The total amount of money in the economy

• The difference between income and wealth

Which of the following is an example of income?

• Stocks

• Wages from working

• Art

• Property

Which Gini Co-Efficient represents an economy with the highest level of income inequality?

• 0.20

• 0.40

• 0.60

• 0.80

What does absolute poverty refer to?

• Lack of access to luxury goods

• Lack of basic life requirements such as housing, clothing, or food

• Having less income than the average person

• Being unable to afford a car

What is the Henderson poverty line used for?

• To measure the maximum income a family can earn

• To determine the average income level in Australia

• To measure the minimum income a family needs to avoid poverty

• To calculate the cost of living in urban areas

As of March 2024, what is the Henderson Poverty line for a family including two adults and two dependent children?

• $500.00 per week

• $1145.61 per week

• $750.00 per week

• $1000.00 per week

How can high levels of income inequality affect economic growth?

• It can increase consumer demand

• It can limit overall economic growth

• It can boost the economy

• It can stabilize the market

What impact does high levels of income inequality have on crime rates?

• Decreased crime rates

• No effect on crime rates

• Increased crime rates

• Stabilized crime rates

How is income inequality linked to health issues?

• It leads to better health outcomes

• It has no effect on health

• It is linked to poorer health outcomes

• It improves access to healthcare

Someone who is retired is considered unemployed. Is this true or false?

• True

• False