Understanding Inequity vs. Inequality

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Questions and Answers

What is the primary difference between inequity and inequality?

Inequity and inequality are synonymous terms.

Inequity concerns resources, while inequality addresses opportunities.

Inequity is a current state, while inequality is a future event.

Inequity refers to opportunities, while inequality refers to current outcomes. (correct)

Which of the following best defines vertical inequality?

Inequality across different ethnic or religious groups.

Inequality within a specific socioeconomic group.

Inequality among different regions in a country.

Inequality among different individuals or households. (correct)

What are the welfare implications of measuring inequality over time?

It highlights the importance of transitional statuses between poverty and wealth. (correct)

It simplifies understanding economic stability.

It focuses solely on income disparities.

It eliminates the need for measuring inequality in different populations.

Which of the following is NOT a consequence of high inequality?

Increased access to loans for lower-income individuals. Signup and view all the answers

What is a key reason why high inequality leads to economic inefficiency?

It reduces the population eligible for loans or credit. Signup and view all the answers

Which of the following is a method by which high inequality can influence policy decisions?

Facilitating excessive lobbying by interest groups. Signup and view all the answers

Which space of inequality concerns access to resources such as education and healthcare?

Capability inequality Signup and view all the answers

How can high levels of inequality affect social stability?

By increasing lobbying and political donations. Signup and view all the answers

Which type of inequality refers to variations among specific age or gender groups?

Horizontal inequality Signup and view all the answers

Which of the following statements about bribery is correct?

Bribery involves exchanging value to affect an official's action. Signup and view all the answers

What is cronyism primarily concerned with?

Favoring close friends in political or business matters Signup and view all the answers

What does the term 'bahramdipity' refer to?

The suppression of unexpected discoveries by powerful individuals Signup and view all the answers

According to John Rawls, which concept allows individuals to act impartially when considering fairness?

The veil of ignorance Signup and view all the answers

What factor does NOT contribute to inequality due to weak institutions?

Certainty of property rights Signup and view all the answers

What does path dependence suggest about a country's future development?

It is influenced and sometimes constrained by past decisions Signup and view all the answers

Which of the following is a consequence of cronyism?

Reduced trust in institutions Signup and view all the answers

In the context of inequality, what does the 'veil of ignorance' help to test?

The fairness of societal structures Signup and view all the answers

Which of the following concepts describes the idea that some practices in society lead to further complicating inequalities over time?

Path dependence Signup and view all the answers

Colonization can create inequalities primarily through what mechanism?

Extractive states and settler colonies Signup and view all the answers

What role does inequality play according to the provided content?

Undermines social stability Signup and view all the answers

What is more likely to occur in places with a less favorable disease environment for European settlers?

Creation of extractive states Signup and view all the answers

What characterizes settler colonies compared to extractive states?

Emphasis on private property rights Signup and view all the answers

What factor contributes to the persistence of weak institutions among new elites?

Preference for exploiting extractive systems Signup and view all the answers

Which of the following is NOT one of the four identified megatrends according to the UN-DESA?

Globalization of Trade Signup and view all the answers

What is a significant effect of technological innovation on the workforce?

Creation of digital divides Signup and view all the answers

How does climate change disproportionately affect certain populations?

It exacerbates poverty among marginalized communities. Signup and view all the answers

What role do urban areas play in economic development?

Catalysts for economic growth and innovation Signup and view all the answers

What negative impact can international migration have on source countries?

Brain drain of skilled professionals Signup and view all the answers

What does the term 'zemblanity' refer to in the context of inequality?

Unfortunate discoveries occurring by design Signup and view all the answers

What is a possible consequence of rising temperatures in tropical countries?

Adverse effects on economic growth Signup and view all the answers

Study Notes

Inequity vs. Inequality

Inequity refers to opportunities to achieve future life outcomes; it is measured before events occur (ex-ante).
Inequality describes the current spread of life outcomes and is assessed through metrics such as Gini coefficients and Lorenz curves (ex-post).

Defining Inequality

Inequality can be studied among individuals, households, different demographic groups, regions within a country, or on a global scale.
It can manifest as vertical inequality (among individuals/households) or horizontal inequality (within a specific group).
Different dimensions of inequality include income, capability, and access to resources.
The implications of inequality vary significantly over time, particularly how individuals move in and out of poverty.

Why Inequality is a Problem

Economic inefficiency: High inequality limits loan accessibility, trapping lower-income individuals in cycles of debt.
Social instability: High inequality enhances political power of the wealthy, allowing for rent-seeking behaviors that distort policy decisions, such as excessive lobbying, political donations, bribery, and cronyism.
Unfairness: Philosophical arguments (e.g., John Rawls' veil of ignorance) suggest that most would opt for less inequality if unaware of their future positions in society.

Causes of Inequality

Weak Institutions: Poor property rights, unstable political environments, and corrupt markets hinder equitable growth.
Historical Factors: Colonial histories establish path dependencies that affect current inequality levels; extractive states prioritize resource extraction over institutional development.
Institutional Legacies: New elites often perpetuate extractive institutions for personal gain, leading to persistent inequality.

Megatrends of Inequality

Technological Innovation: Creates both benefits and disparities; skilled workers profit while those without access to technology fall behind, creating digital divides.
Climate Change: Disproportionately affects marginalized populations in rural areas, intensifying chronic poverty and economic disparities.
Urbanization: More people living in urban areas can lead to economic growth but may also marginalize those within weak institutional frameworks.
International Migration: Offers opportunities and challenges; while migrant remittances can boost economies, brain drain can hinder the development of origin countries by depleting skilled labor.

Zemblanity of the World

The term describes the tendency to encounter unhappy and expected discoveries, prompting questions about whether such inequalities and inequities exist by design.

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Description

This quiz explores the concepts of inequity and inequality, their definitions, and their implications on society and economy. Learn how these terms differ and the impact they have over time. Test your understanding of the various dimensions and effects of inequality.