Income Inequality MCQs
Income Inequality – MCQs with Answers & Explanations
Class: CBSE Class 11
Subject: Economics
Section: Poverty
Topic: Income Inequality
Board: CBSE Board Examination
Subject: Economics
Section: Poverty
Topic: Income Inequality
Board: CBSE Board Examination
These Multiple Choice Questions (MCQs) are designed strictly as per the NCERT syllabus, making them ideal for CBSE Class 11 Board Exam preparation.
1. Income inequality refers to:
Correct Answer: B
Income inequality means income is concentrated among a few while many earn very little.
2. A major cause of income inequality is:
Correct Answer: B
Ownership of land, capital, and property creates income gaps.
3. Lorenz Curve measures:
Correct Answer: B
It graphically shows inequality in income distribution.
4. Gini Coefficient indicates:
Correct Answer: B
Higher Gini value means greater inequality.
5. Education reduces inequality by:
Correct Answer: B
Skills improve employment and income opportunities.
6. Wage disparity means difference in:
Correct Answer: B
Different pay for similar work widens inequality.
7. Urban‑rural divide reflects:
Correct Answer: B
Urban areas often have higher incomes.
8. Gender inequality affects:
Correct Answer: A
Women often earn less than men.
9. Progressive taxation helps:
Correct Answer: B
Higher taxes on rich redistribute income.
10. Subsidies aim to:
Correct Answer: B
They lower cost of essentials.
11. Wealth inequality differs from income inequality as it concerns:
Correct Answer: A
Wealth includes land, property, and capital assets.
12. Market imperfections cause:
Correct Answer: B
Unequal bargaining power affects earnings.
13. Monopoly power leads to:
Correct Answer: B
Profits concentrate with owners.
14. Social discrimination increases:
Correct Answer: B
It restricts access to opportunities.
15. Human capital formation reduces:
Correct Answer: A
Education & health improve earnings.
16. Minimum wage laws aim to:
Correct Answer: B
They ensure fair income.
17. Economic growth without redistribution may:
Correct Answer: B
Benefits may go to rich first.
18. Land reforms aim to:
Correct Answer: A
They redistribute land ownership.
19. Financial inclusion helps by:
Correct Answer: A
Poor gain banking services.
20. Inclusive growth means:
Correct Answer: A
Benefits of growth reach all sections.
