Income inequality refers to the distribution of earnings, while wealth inequality refers to the distribution of assets.

Progressive taxes take a larger percentage from high-income earners, while regressive taxes take a larger percentage from low-income earners.

They are the same; both take the same percentage of income from all income groups.

Progressive taxes reduce income inequality by redistributing income, while proportional taxes maintain the existing income distribution.

The Lorenz curve is a graphical representation of income distribution, while the Gini coefficient is a numerical measure derived from the Lorenz curve that quantifies income inequality.

Equality of opportunity ensures everyone has the same chances, while equality of outcome aims for everyone to have the same results, regardless of their starting point.

A flat tax takes the same percentage from all, while a regressive tax disproportionately burdens lower-income groups, even if the rate is the same for everyone.

Earned income is derived from labor, while unearned income comes from investments and assets, often contributing to wealth concentration and inequality.

Progressive taxes redistribute income, while a social safety net provides direct support to low-income individuals, both reducing income inequality through different mechanisms.

Income mobility refers to the ability of individuals to move up or down the income ladder, while income inequality describes the static distribution of income at a given point in time.

Progressive taxation tends to reduce income inequality by redistributing income from higher earners to lower earners.

Regressive taxation tends to increase income inequality by disproportionately burdening lower-income earners.

They can reduce income inequality by providing opportunities for low-income individuals to acquire skills and increase their earning potential.

Minimum wage laws can reduce income inequality by increasing the earnings of low-wage workers, but may also lead to job losses.

Rent control can benefit existing tenants, but may reduce the supply of affordable housing and potentially worsen income inequality in the long run.

It can reduce income inequality by providing disadvantaged children with a strong foundation for future success, improving their educational and economic outcomes.

Unemployment benefits provide a safety net for those who lose their jobs, reducing the severity of income shocks and lessening income inequality during economic downturns.

They can reduce income inequality by ensuring that low-income individuals have access to necessary medical care, improving their health and productivity.

Deregulation can lead to increased competition and economic growth, but may also exacerbate income inequality if it results in lower wages and reduced worker protections.

They can create opportunities for individuals to start their own businesses and increase their income, but may also lead to greater income disparities if some entrepreneurs are more successful than others.

Inheritance allows wealth to be passed down through generations, concentrating assets among certain families and exacerbating existing inequalities.

Discrimination limits opportunities for certain groups, leading to lower wages and reduced access to education and jobs, thus increasing income inequality.

It prevents lower-income individuals from growing their wealth through investments, savings, and loans, widening the gap between the rich and the poor.

By taxing higher incomes at a higher rate and redistributing that revenue, progressive taxes can reduce income inequality and provide resources for social programs.

Sales tax takes a larger percentage of income from lower-income groups because they spend a larger portion of their income on taxable goods.

Transfer payments like welfare provide income support to low-income individuals and families, increasing their disposable income and reducing the income gap.

Individuals with higher levels of education, skills, and experience (human capital) tend to be more productive and earn higher wages, leading to income disparities.

Workers with strong bargaining power (e.g., through unions) can negotiate for higher wages and better benefits, while those with less power may face lower pay and poorer working conditions, contributing to income inequality.

Limited access to quality education restricts opportunities for skill development and upward mobility, perpetuating income disparities between those with and without educational advantages.

Those with strong social networks have better access to jobs and opportunities, increasing their income potential, while those lacking such networks may face barriers to advancement, exacerbating income inequality.