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3.3.3 Causes and consequences of income differences

Card 1 of 26

What is inequality?

A

Rising house prices increase the wealth of homeowners but add nothing to renters' wealth.

B

Older households have had longer to save, so some wealth inequality reflects life stage rather than lifetime prosperity.

C

Low-income households spend a larger share of their income, so concentrating income at the top can reduce total spending.

D

Inequality is when income or wealth is spread unevenly across the population.

Card 1 of 26

3.3.3 Causes and consequences of income differences Flashcards

  1. GCSE
  2. /Economics
  3. /3.3.3 Causes and consequences of income differences

26 flashcards on OCR GCSE Economics 3.3.3 Causes and consequences of income differences: the key terms, formulae and calculations you need to recall for Component 01 and Component 02.

Flashcards