Income Inequality

Vocabulary

capital

any asset that can enhance a person's power to perform economically useful work

competitive consumption

a situation in which middle- and lower-income households spend beyond their means to keep up with the consumption habits of the wealthy

consumption

the purchase of goods and services by households

debt

money owed by one party, the debtor, to a second party, the creditor

disposable income

income remaining after deduction of taxes and other mandatory expenses and addition of government transfers, which households can spend or save

dividend

portion of a company's earnings distributed to a shareholder

economic mobility

the movement of individuals from one economic level to another

globalization

the process of businesses, organizations, countries, and other agents engaging in international interactions, manufacturing, monetary exchange, influence, or trade

income

money or a money-equivalent received through the selling of capital, including land or labor, or through investments; income may also include in-kind compensation from work (like fringe benefits) or government transfers.

income inequality

the unequal distribution of income across members of an economy

offshoring

a strategy used by firms to produce parts or whole products in a different economy from which they are based in order to take advantage of lower costs.

supply

total amount of a specific good or service that is available to consumers

wealth

the total value of all assets minus any debts or liabilities

wealth inequality

the unequal distribution of wealth across members of an economy