Asked by Jamal Drayton on May 21, 2024
Verified
How do income inequality and wealth inequality in Canada, measured by quintile shares, compare to each other?
A) Income inequality is greater than wealth inequality.
B) Wealth inequality is greater than income inequality.
C) Wealth inequality is increasing, while income inequality is decreasing.
D) Income inequality is increasing, while wealth inequality is decreasing.
Wealth Inequality
The unequal distribution of assets among residents of a country or the world, leading to disparities in wealth and economic opportunities.
Income Inequality
The unequal distribution of individual or household income across the various participants in an economy, contributing to varying levels of wealth within a society.
Quintile Shares
refer to the division of a population into five equal groups based on a particular variable, typically used for analyzing income distribution.
- Understand the variables responsible for the differences in income and wealth accumulation.
Verified Answer
NW
Nicardo WrightMay 22, 2024
Final Answer :
B
Explanation :
Wealth inequality is greater than income inequality in Canada, as wealth (assets minus debts) is typically more unevenly distributed than income. Wealth can accumulate over generations, leading to significant disparities, whereas income is more related to employment and can be somewhat more evenly distributed due to policies like progressive taxation.
Learning Objectives
- Understand the variables responsible for the differences in income and wealth accumulation.