There are many different aspects in economics. Some are good, some bad, and some confusing. Economics is social science that seeks to describe the factors which determine the production, distribution and consumption of goods and services. One of the services to consider is the supply and demand of labor market, wages, and income inequality.
Labor market and wages can be defined in two steps. Step one: What is market wages? Market wages is the price determined by the labor market. Step two: What is a labor market? A labor market is the supply of available workers in relation to available work. When dealing with the labor market you tend to deal with supply and demand. Demand and supply in labor market is similar to demand and supply dealing with goods. It is stated …show more content…
Income inequality is a measurement of the distribution of income that highlights the gap between individuals of households making most of the income in a given country and those making very little. In 1980 to 2010, income inequality in the U.S. in 2010 earned almost 50% of the total income while the bottom 15% earned less than 4% (businessdictionary.com). One of the most famous examples of income inequality is male vs. female. That is, that male’ often makes more than females’. Other examples are that minorities making less than the majority at least that is what first comes to mind when people hear the words income inequality. What are some of the real reason income inequality actually exists? Examples of the cause of income inequality are: Education, if you have higher education than others; you will most likely make more income. Discrimination in training, hiring and again education also contributes to income inequality. Risk-takers, and connections can also lead to income inequality. Income inequality can be shown on a graph are well. Look at two different graphs regarding low-skilled and highly-skilled