Deck 12: Is Inequality Bad for Business

Question 1

Statistics show that, rather than girls being disadvantaged in education compared to boys, in fact more girls than boys achieve at least five A*-C GCSEs or equivalent, including English and Mathematics, at state schools in England.

Answer 1

True

Question 2

According to the Milburn report the evidence shows that societies have to choose between greater equality and more social mobility.

Answer 2

False

Question 3

In July 2017 the BBC produced a list of the salaries of all of the 'top talent' who are paid more than £150,000, which showed two-thirds of these 96 high earners, and all of the top seven, were women.

Answer 3

False

Question 4

Advocates of equality of opportunity argue that 'As long as opportunities are equal, it is fair enough if some get ahead and others fall behind.'

Question 5

The term 'the going rate' refers to:

A) The sum paid to chief executives of companies who are forced out of their jobs
B) The wage or salary for a job determined by competitive conditions in the labour market
C) The annual rate of outward migration from the country
D) The death rate (number of deaths per thousand of the population)

Question 6

According to the Equality Trust in 2015/16 what was the ratio between the average pay of chief executives of the top 100 UK businesses and the statutory National Living Wage?

A) 86:1
B) 186:1
C) 286:1
D) 386:1

Question 7

The 2009 Milburn report was concerned with:

A) High pay and inequality in the UK
B) Sexual discrimination in the labour market
C) The effect of the National Minimum Wage (NMW)
D) Fair access to the professions

Question 8

The idea that people from different backgrounds should enjoy the same chances to benefit from valued opportunities, e.g. if an employer discriminates between female or black candidates for promotion.

A) Democracy
B) Equality of outcome
C) Equality of opportunity
D) Discrimination

Question 9

The gap between the earnings of directors and employees might be justified in terms of the following principles. Please select all that apply.

A) Incentives
B) Social cohesion
C) Trickle-down effect
D) Workforce morale

Question 10

According to the Milburn report on access to the professions (2009) 'the professions have become ... less socially exclusive over time'.

Question 11

Evidence from several generations shows that only 18 per cent of sons of working class fathers became professionals and managers.

Question 12

In the UK in 2014 (Q4) what proportion of women were participating in the labour market, i.e. either in employment or actively seeking work?

A) 55 per cent
B) 35 per cent
C) 75 per cent
D) 95 per cent

Question 13

What proportion of directors of the UK's top 100 companies are women (using 2015 data)?

A) 6 per cent
B) 36 per cent
C) 16 per cent
D) 26 per cent

Question 14

What does a meritocratic conception of equality of opportunity involve? Please select all that apply.

A) It is unfair to choose between candidates for a job on the basis of their sex
B) Appointment should be decided on the basis of the talents of the applicants
C) There should be equal numbers of men and women in each occupation
D) The best applicant in terms of skills and qualifications relevant to the job should be appointed

Question 15

It has been estimated that the woman working full time in the UK experiences a lifetime earnings gap of around £300,000 compared to full-time men.

Question 16

The phenomenon of a persistent pay gap between men and women is not related to occupational segregation between men and women.

Question 17

Which of the flowing statements is correct?

A) If a country experiences a rise in its income Gini coefficient over time then this shows that it is becoming more equal in terms of income distribution.
B) If a country experiences a rise in its income Gini coefficient over time then this shows that it is becoming a fairer society in terms of income distribution
C) If a country experiences a rise in its income Gini coefficient over time then this shows that it is becoming a more unfair society in terms of income distribution
D) If a country experiences a rise in its income Gini coefficient over time then this shows that it is becoming a more unequal society in terms of income distribution

Question 18

Neoclassical/free market economists tend to feel that income inequality across occupations and between people reflects: (Please select all that apply.)

A) The relative differences in the demand and supply in individual labour markets
B) The ability of one class to exploit its economic and political power over other classes
C) The need for the economy to provide greater incentives in occupations where the demand for labour is high and the supply is limited
D) The fact that ownership of capital is restricted and that it is the unearned income from this that is the biggest determinant of income inequality

Question 19

If in terms of income country A has a Gini coefficient of 0.62 and country B one of 0.25 then we can conclude that country A has a more equal distribution than country B

Question 20

There is clear empirical evidence that as countries develop and grow that income inequality will rise but that over time it will naturally begin to fall as 'trickle down' kicks in.