A Level Economics AQA Practice Exam

Wealth inequality is best described as:

1. The equal distribution of resources across a population

2. The unequal distribution of assets within a population

3. The annual income disparity among individuals

4. The overall consumption level of a society

The correct answer is: The unequal distribution of assets within a population

Wealth inequality refers specifically to the uneven distribution of assets, such as property, investments, and savings, among individuals or groups in a society. This concept highlights how different segments of the population possess varying levels of wealth, leading to disparities that can have significant social and economic implications. When considering the other options: - The equal distribution of resources does not align with the notion of inequality, as it implies a balanced allocation rather than a disparity. - Annual income disparity addresses income rather than wealth, which are distinct concepts; income refers to the flow of money received over a certain period, while wealth is a stock measure of owned assets. - Overall consumption level describes the spending patterns in a society, which does not directly capture the differences in wealth among individuals. Thus, the focus on the "unequal distribution of assets" precisely captures the essence of wealth inequality as it emphasizes the disparity in ownership rather than the flow of income or equal distribution.