Only provide your opinions when specifically called for. In all other cases your

Question

Only provide your opinions when specifically called for. In all other cases your answer(s) should rely on the text and module materials and not on the internet, showing your capacity to apply the appropriate economic principles and concepts correctly.

1. How would you define income inequality and how is it measured?

2. What has happened to income inequality in the United States since the end of the Second World War in 1945 and what evidence can you provide to support your answer?

3. What are the reasons for the changes in income inequality since 1945.

Suggestion: Click here to visit the Web site for the documentary film Inequality for All. The site enables you to rent or purchase the film, if you choose. Or you can click on “Graphics Package” to download a free copy of informative graphics from the film. Take a look at those. Summarize what you learn, and share your thoughts.

Explanation / Answer

1)

Income inequality refers to the uneven distribution of income among the people in country. Typically, it is expressed in percentage term, what percent of population accounts for what percent of income.

Following methods are used to calculate income inequality:

2)

Income inequalities have increased dramatically since 1970. top 1 % accounted for 12 % of wealth in 1970 and bottom 90 % had 67 % of total wealth, but over the period of time, presently too 1 % population accounts for 24 % of total wealth while bottom 90 % has been reduced to less than 50 %.

thus, we can conclude that income inequality has increased dramatically.

3)

Causes of income inequalities:

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