Class 15 and 16 - Accounting, Finance, and Economic Inequality

Flashcards for the GMGT 1010 lecture on Accounting, Finance, and Economic Inequality.

Accounting

The process of measuring wealth and the financial impact of transactions.

Finance

The art of raising money (financing) and spending money (investing).

Economic Inequality

The extent to which income is unevenly distributed within a population.

Income Inequality

A measure of how evenly income is distributed among a population.

Lorenz Curve

A graphical representation of income distribution, showing the cumulative share of income earned by the poorest x% of the population.

Gini Coefficient

A statistical measure of distribution that represents the income inequality within a population.

Resource Allocation

The process of distributing resources among various projects or business units.

Cumulative Share of Income

The total income earned by a set percentage of the population.

Top 1% Income Share

The proportion of total pre-tax income earned by the richest 1% of a population.

OECD

Organization for Economic Co-operation and Development, an intergovernmental economic organization.

Income Ratio

The ratio of the average income of the richest segment to that of the poorest segment.

Economic Incentive

Factors that motivate individuals to perform an action.

Innovation

The act of introducing something new, such as a new idea or method.

Wealth Inequality

The unequal distribution of assets among residents of an economy.

Social Problems Index

A metric that quantifies various social issues within a given population.

Infant Mortality Rate

The number of deaths of infants under one year old per 1,000 live births.

Life Expectancy

The average period that a person may expect to live.

Health Problems Index

A measure of health-related issues within a population.

First Year Death Rate

Deaths occurring in the first year of life per 1,000 live births.

Wealth Share by Population

The percentage of total wealth owned by a specific percentage of the population.

Income Distribution

How a nation’s total GDP is distributed amongst its population.

Population Wealth Share

The proportion of total wealth held by different segments of a population.

Resource Allocation and Inequality

How the distribution of resources contributes to economic inequality.

Creative Ambitions

Desires or goals that drive individuals to explore new ideas or innovations.

Negative Social Outcomes

Adverse effects on society as a result of economic disparities.

Inequality Debate

A discussion on the pros and cons of economic inequality.

Canadian Income Inequality

The increasing disparity in income distribution across Canada.

Economic Growth

An increase in the production of goods and services in an economy.

Societal Implications

The effects or outcomes that economic conditions have on social structures.

Top 20% vs Bottom 20% Ratio

Comparison of income between the highest and lowest income earners in a population.

Financial Transactions

Exchanges of monetary value between parties.

Income Measurement Methods

Various techniques used to assess income distribution.

Economic Indicators

Statistics that provide information about economic performance.

Wealth Distribution

The way that wealth is spread across a population.

Resource Management

The efficient and effective deployment of an organization's resources.

Financial Stability

A condition in which the financial system operates efficiently and effectively.

Socio-Economic Status

An economic and sociological combined measure of a person's work experience and of an individual's or family's economic and social position.

Creative Opportunities

Circumstances that allow individuals to innovate and create new products or services.

Economic Disparities

Variations in economic status and wealth across different demographics.

Wealth Concentration

The degree to which wealth is held by a small number of individuals or groups.

Health Inequality

The unequal distribution of health resources and the outcomes of health across different populations.

Inequality and Social Welfare

The effects of economic inequality on social support systems.

Economic Resilience

The ability of an economy to recover from shocks and disruptions.

Equitable Growth

Growth that is distributed fairly across society.

Social Mobility

The ability of individuals or families to move up the socio-economic ladder.

Wealth Gap

The difference in wealth between different populations or social groups.

Fringe Benefits

Additional benefits offered to employees beyond their salary.

Economic Policies

Government strategies aimed at influencing economic activity.

Income Inequality Effects

The consequences of uneven income distribution on society.

Inequality and Critical Conditions

The relationship between economic disparities and essential social conditions.

Income Sectors

Different areas within the economy that contribute to income generation.

Earning Disparities

Differences in income levels between various segments of the population.

Investment Decisions

Choosing where to allocate capital in order to generate a return.

Human Capital

The economic value of a worker's experience and skills.

Fiscal Responsibility

The practice of maintaining financial health and ensuring government spending does not exceed revenue.

Allocation of Financial Resources

The distribution of financial assets among different entities or projects.

Equity Financing

Raising capital through the sale of shares in a business.

Debt Financing

Obtaining funds through borrowing.

Capital Resources

Assets that can be used for production.

Labor Force Participation

The percentage of the working-age population that is engaged in the labor market.

Economic Disadvantages

Conditions that hinder economic progress for certain groups.

Global Wealth Distribution

How wealth is allocated around the world.

Income Taxation

A tax imposed on individual earnings and corporate profits.

Public Policy

Guidelines and regulations aimed at influencing social outcomes.

Income Inequality Trends

Patterns observed in the distribution of income over time.

Affluence

The state of having a great deal of money; wealth.

Relative Poverty

A condition where household income is a certain percentage below the median income.

Social Capital

The networks and relationships that contribute to social cohesion and support.

Economic Freedom

The degree to which individuals can control their economic resources.

Corporate Finance

The area of finance dealing with the sources of funding and capital structure of corporations.

Public Finance

The study of government expenditures, revenues, and debt.

Investment Strategies

Specific plans for allocating resources to generate returns.

Financial Equity

Fairness in the distribution and access to financial resources.

Income Support Programs

Government initiatives designed to provide financial assistance to individuals.

Tax Justice

The concept that the tax system should be fair and equitable.

Living Wage

A wage that is sufficient to maintain a normal standard of living.

Economic Rights

The rights of individuals to have access to economic resources.

Systemic Inequality

Inequality that is embedded in the structure of society.

Social Security Programs

Government programs designed to provide income to individuals during retirement or in case of disability.

Employment Discrimination

Unfair treatment of employees based on race, gender, or other characteristics.

Wage Disparities

Differences in wages paid to employees in similar jobs.

Comprehensive Wealth Accounting

An accounting method that considers all types of wealth, including non-financial aspects.

Market Inefficiencies

Situations in which the market fails to allocate resources efficiently.

Political Economy

The study of the interrelationships between politics and economics.

Social Inequity

The unfair distribution of resources and opportunities in society.

Income Equality Policies

Strategies aimed at reducing income gaps across populations.

Universal Basic Income

A model of social security where all citizens receive a regular, unconditional sum of money.

Access to Financial Services

The ease with which individuals can obtain financial products and services.

Income-based Subsidies

Financial aid programs aimed at assisting lower-income individuals or families.

Labor Market Flexibility

The ability of the labor market to adapt to changes in the economy.

Corporate Social Responsibility

The practice of integrating social and environmental concerns in business operations.

Workplace Equality

Ensuring equal treatment and opportunities for all employees regardless of background.

Financial Literacy

The understanding of how to effectively use various financial skills.

Consumer Protection Laws

Regulations designed to protect consumers from unfair business practices.

Affordable Housing

Housing that is reasonably priced for individuals and families.

Poverty Alleviation

Strategies and efforts aimed at reducing poverty rates.

Workforce Development

Programs and policies to enhance the skills and abilities of workers.

Economic Mobility

The ability of individuals to improve their economic status.

Consumer Debt

Money owed by consumers to financial institutions.

Interest Rates

The amount charged by lenders to borrowers for the use of money.