Suppose that Jennifer earns $10,000 in year 1 and $40,000 in year 2,while Shawna earns $40,000 in year 1 and only $10,000 in year 2.Is there income inequality for the two individuals?

Question

Quizplus · Accepted Answer

Income inequality refers to a situation where there is a significant disparity between the incomes of different individuals or groups. In this case, Jennifer and Shawna have unequal incomes in both years, but the difference in their incomes is more pronounced when we consider the two years together. While Jennifer's income increases fourfold from year 1 to year 2, Shawna's income experiences a sharp decline over the same period. Therefore, the yearly data indicate inequality, but the data over the two years indicate even greater inequality between the two individuals.

Suppose That Jennifer Earns $10,000 in Year 1 and $40,000