INCOME INEQUALITY

uneven distribution

Q: What is income inequality?

A: Income Inequality refers to the ____ of income and wealth across different individuals or groups within a society.

increase, GDP

Q: What is economic growth?

A: Economic Growth is the ___ in the production of goods and services in an economy over time, typically measured by the rise in ____.

Kuznets curve, rises, mature, education and capital

Q: Does inequality hinder growth?

Some theories, like the ____, suggest that in early stages of development, inequality ___, but then it falls as economies ___. Others argue that high inequality limits growth because it prevents people in lower income brackets from accessing ____, thus stunting overall productivity.

increases, decreases

Q: What is the Kuznets Curve Theory?

A: The Kuznets Curve theory suggests that inequality initially ____ as an economy develops (as industrialization and urbanization take place) but eventually ____ as the economy matures and wealth is more evenly distributed.

disagree

[KUZNETS CURVE THEORY ARGUMENT]

“Economists ____ on whether income inequality is inherently bad for growth.”

innovation, incentives

[KUZNETS CURVE THEORY ARGUMENT]

“Inequality can drive ____ and provide ___for people to work harder.”

WHY?: They strive to increase their income.

social stability, human capital development

[KUZNETS CURVE THEORY ARGUMENT]

If inequality gets too high, it can undermine ___ and create barriers to ____ (e.g., poor education and health in lower-income groups).

learning, acquiring

Q: What is education?

A: Education refers to the process of ____ and ____ knowledge or skills.

wealth or earnings

Q: What is income inequality

A: Income Inequality refers to the unequal distribution of _____ across different groups.

primary tool, improving access

Q: How to use education to reduce income inequality?

A: Education is often seen as a ____ for reducing income inequality. By ____ to quality education, individuals can increase their skills and subsequently their earning potential.

cycle of poverty

[EDUCATION]

Access to education is often unequal in poorer communities, which perpetuates the ___.

education, income distribution

Q: What is the Human Capital Theory?

A: Human Capital Theory suggests that investing in ____ increases an individual’s skills and thus their earning potential. As more people get educated, the ____ becomes more equal.

limited, cycle of inequality, earning

Q: What is a challenge in income inequality in terms of educational attainment?

A: Often, education systems are unequal, and access is ____ for poorer populations. This creates a ____ because children in lower-income families may not have access to quality education, which limits their future ___ potential.

technology, human intervention

Q: What is automation?

A: Automation refers to the use of ___ to perform tasks without ___.

tools, machines, systems

Q: What is technology?

A: Technology encompasses new ___, ___, or ___ that increase productivity.

job displacement, manufacturing, low-skill, wage stagnation, unemployment

Q: How does technology lead to technological displacement?

A: Technology increases productivity, but automation often results in ____, particularly in ___ and ___ sectors. The skills gap means that those without high-tech skills will see ___ or ___.

artificial intelligence, robotics, software engineering

Q: How does technology lead to the creation of high skill?

A: New technologies create high-paying, specialized jobs in fields like ___, ____, and _____.

larger percentage

Q: What is progressive taxation?

A: Progressive taxes mean that higher-income individuals pay a _____ of their income in taxes, which can be used to fund social services and reduce inequality. However, critics argue that higher taxes on the wealthy can discourage investment and entrepreneurship, which could hinder growth

redistribute

Q: How does welfare and social programs promote economic growth?

A: These policies aim to ____ wealth to poorer populations.

social safety nets

Some economists argue that ____ improve human capital (e.g., through healthcare, housing, and education), which can increase productivity.

redistribution

Some argue that too much ____ can create dependency and reduce economic dynamism.

government actions

Q: What are restribution policies?

A: Redistribution Policies are ___ aimed at reducing income inequality, often through taxes, welfare programs, and subsidies.

present, future generations

Q: What is sustainable economic growth?

A: Sustainable Economic Growth refers to growth that meets the needs of the ___ without compromising the ability of ___ to meet their own needs.

interconnection

Q: What is globalization?
A: Globalization refers to the increasing ___ of economies and societies through trade, investment, and information exchange.

more capital

CAUSE: Trade agreements often favor countries with ___.

EFFECT: Less-developed nations are at a disadvantage.

Lower wages

CAUSE: Large corporations benefit from cheaper labor abroad.

EFFECT: ___ for workers in wealthier countries.

job polarization

Globalization tends to create high-skill, high-wage jobs, but also low-skill, low-wage jobs. The middle class, especially in industrial economies, has seen wage stagnation or job loss as a result of outsourcing.

institutions, policies

Q: What is government?

A: Government refers to the ___ and ___ that regulate and manage the economy.

equal access

Q: What are fair economic opportunities?

A: Fair Economic Opportunities mean that everyone has ___ to economic resources, such as jobs, education, and healthcare.