Question

1. How does income inequality affect poverty and quality of life in a country?
2. Which of the following factors can be seen as impediment to growth? Pick 4 and explain in 3-5 sentence.
a. Lack of saving resulting from low per capital income
b. underdeveloped financial markets
c. lack of confidence in financial assets
d. shortage of entrepreneurs
e. inadequate infrastructure
f. low level of human capital
g. foreign exchange shortage
h. weak government and civil conflict
g. limited government resources

Answer 1

Answer:

1. ans : If inequality affects how income groups behave… growth may be affected by their inability to invest in education and their lower health levels, among other factors. may reduce its demand for goods and services. could see them accumulate savings, which banks can then lend out, so increasing investment in the economy.