What is a likely outcome of high income inequality within a society?

Prepare for the FBLA Economics Exam. Engage with detailed explanations and multiple choice questions to boost your understanding of economics concepts. Maximize your success on exam day!

High income inequality within a society often leads to heightened social tensions and unrest. When wealth is concentrated in the hands of a few, it can create feelings of frustration and resentment among those who feel marginalized or left behind. This disparity can result in social divisions, where different economic classes may struggle to understand each other's experiences and perspectives. A lack of access to resources and opportunities for lower-income groups can exacerbate these feelings, leading to protests, strikes, and other forms of social unrest as individuals and communities demand attention to their grievances.

Furthermore, societies with significant income inequality may struggle to maintain social cohesion, leading to a breakdown in trust between different groups and institutions. When people see stark contrasts in wealth and opportunity, it can provoke conflict rather than cooperation, challenging the stability of the society as a whole. This outcome contrasts with the other potential effects like increased social mobility, where greater equality typically fosters opportunities for advancement across socioeconomic classes, or greater political stability, which is often seen in more equitable societies.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy