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Which of these is not a common cause of income inequality? question 11 options:

a) the choice of city where one lives
b) differences in human capital
c) economic labor discrimination
d) number of earners in a household

1 Answer

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Final answer:

Income inequality is influenced by factors like human capital, discrimination, and the structure of household earnings, not primarily by the choice of city.

The correct option that is not a common cause of income inequality is a) the choice of city where one lives.

Step-by-step explanation:

The question at hand asks which of the following is not a common cause of income inequality: a) the choice of city where one lives, b) differences in human capital, c) economic labor discrimination, d) number of earners in a household. The correct option that is not a common cause of income inequality is a) the choice of city where one lives. While where one lives can affect cost of living and job opportunities, it is not commonly cited as a direct cause of income inequality in the same way that human capital, discrimination, or household earning structure are. Income inequality is often measured by dividing the population into income groups like quintiles and is influenced by changes in household structures, such as the prevalence of two-earner couples and single-parent families, as well as by new information and communications technology affecting wages.

Public policies that can reduce income inequality include redistribution measures, improved access to education, and estate taxes. It is worth noting that while pushing for economic equality might reduce incentives to work in some cases, a moderate push for equality can boost economic output and support for market forces.

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