Posted: April 24th, 2015

economic – income inequity

economic – income inequity

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Answer the following questions in the essay.

The market system always results in an unequal distribution of income and this can have some disadvantages for the economy.
1.How unequal is the distribution of income in Australia? Has the distribution of income become more or less equal over the past 10 years? Give evidence to support your answer.
2.What are the causes of income inequality?
3.How does the tax system reduce inequality in Australia?
4.How much does the government spend on welfare payments? How does this reduce inequality?
5.An International Monetary Fund research paper in 2014 concluded that countries with a high level of income inequality were more likely to have briefer and weaker periods of economic growth. Why did the IMF think this would occur? What did the IMF suggest countries should do to reduce income inequality ( – in your individual assignment you should write 250-500 words on this issue)

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