1. Directions

You will read passages on the topic and then answer questions about them. You may find vocabulary at the end of the test. Read the questions carefully before choosing the correct answers.

2. Questions of the test

Question 1. What is the Gini coefficient?
A) A statistical measure of income distribution that ranges from 0 to 1
B) A statistical measure of income distribution that ranges from -1 to 1
C) A statistical measure of income distribution that ranges from 0 to 100
D) A statistical measure of income distribution that ranges from -100 to 100

Question 2. Which of the following is NOT a factor that can contribute to income inequality?
A) The education and skill levels of a society's population
B) The strength of the economy
C) The government's policies on taxation and social welfare
D) The size of a society's population

Question 3. Which of the following is NOT a way in which governments can address income inequality?
A) Providing social welfare programs
B) Implementing progressive taxation
C) Reducing the minimum wage
D) Providing tax breaks to high income earners

Question 4. Which of the following statements about income inequality is NOT true?
A) Some degree of income inequality is necessary for a healthy economy
B) Excessive income inequality can lead to social and economic problems
C) Income inequality is always a bad thing
D) Income inequality is not influenced by the strength of the economy

Question 5. Which of the following is NOT a way in which governments can address income inequality?
A) Providing social welfare programs
B) Implementing progressive taxation
C) Reducing the minimum wage
D) Providing tax breaks to low income earners