Topic Details (Notes format)

Income Inequality and Its Implications

Subject: Economics

Book: Comprehensive Indian Economy

Rising inequality can undermine social cohesion, limit mass consumer demand, and perpetuate poverty cycles. Factors include uneven distribution of assets, skill disparities, and growth concentrated in high-end services. Tools like the Gini coefficient measure inequality. Strategies to address it involve progressive taxation, social sector spending, and rural employment programs. Students should note how inequality interacts with caste, gender, and regional divides. Examiners often test knowledge on welfare economics, policy instruments (subsidies, direct transfers), and the trade-offs between rapid growth vs. equitable distribution. A balanced approach fosters stable socio-economic development.

Practice Questions

Which of the following is a feature of monopolistic competition?

View Question

Which of the following is an example of fiscal policy?

View Question

What is the Phillips Curve?

View Question

What does “balance of trade” refer to?

View Question

What does the Gini Coefficient measure?

View Question

What is “quantitative easing”?

View Question

Which of the following measures can reduce a trade deficit?

View Question

Which term refers to an economy that has elements of both capitalism and socialism?

View Question

Which term refers to the decrease in the value of a currency relative to foreign currencies?

View Question

Which of the following is a direct tax?

View Question