Those Who Argue for Income Inequality Say That

question 29

Multiple Choice

Those who argue for income inequality say that

• A) reducing inequality will not help the poor very much and may very well reduce society's output.
• B) every dollar taken from the rich puts $1.05 into the pockets of the poor.
• C) the poor are necessary so that the rich can be altruistic.
• D) people framing a constitution for society without knowing what their class position would be would automatically opt for inequality.
• E) greater inequality produces lower saving and greater consumption, thereby ensuring high levels of aggregate demand and employment.

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Definitions:

Foreign Policy

A government's strategy in dealing with other nations, focusing on diplomacy, economic interests, and military strategy to achieve national objectives.

Central Place

A key concept in geographical and urban planning theory, referring to a settlement where various goods and services are available for a surrounding area.

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1994 genocide conducted by the Hutu ethnic group upon the Tutsi minority in Rwanda.

Ethnic Cleansing

The systematic removal of an ethnic group from a territory through violence or intimidation in order to create a homogeneous society; the term was popularized by the Yugoslav policy brutally targeting Albanian Muslims in Kosovo.