MASTERY QUIZ

Capital in the Twenty-First Century

Test your knowledge with 45 questions across 3 challenge tiers

Based on the book Capital in the Twenty-First Century by Thomas Piketty

🥉 Fundamentals

🥈 Deep Dive

🥇 Expert

r > g

The fundamental inequality where return on capital (r) exceeds economic growth rate (g)

Example

When r exceeds g wealth accumulates faster than the economy grows increasing inequality

Capital

The total value of assets that can generate income including real estate stocks bonds and businesses

Example

Capital includes anything owned that produces returns – property investments business ownership

Patrimonial Capitalism

An economic system where inherited wealth dominates and family dynasties control most capital

Example

Nineteenth-century Europe exemplified patrimonial capitalism where birth determined wealth

Capital-Income Ratio

The ratio of total capital to annual national income measuring how much wealth exists relative to yearly production

Example

A ratio of 600% means capital equals six years of national income

Capital Share

The portion of national income going to owners of capital rather than workers

Example

When capital share increases workers receive less of what the economy produces

Wealth Inequality

The unequal distribution of assets and capital across a population

Example

The top 1% owning more than the bottom 50% demonstrates extreme wealth inequality

Income Inequality

The unequal distribution of earnings and income across a population

Example

CEOs earning 300 times average worker pay illustrates income inequality

Progressive Taxation

Tax rates that increase with income or wealth placing higher burden on the wealthy

Example

Progressive taxes were implemented in 20th century to reduce concentration of wealth

Global Wealth Tax

Piketty proposal for an annual tax on total net worth to reduce inequality

Example

A global wealth tax would prevent capital flight that national taxes cannot address

Meritocratic Extremism

The belief that extreme inequality is justified if it results from merit and effort

Example

Super-managers claim their high pay reflects exceptional contribution and talent

Kuznets Curve

The theory that inequality first rises then falls with economic development

Example

Piketty argues Kuznets optimistic theory was based on limited data from unusual period

Super-managers

Top executives whose compensation has risen dramatically especially in Anglo-Saxon countries

Example

Super-manager salaries have increased far faster than average wages creating new inequality

Fundamentals

TIER 1 • READER BADGE

10 Questions ~5 min 80% to pass

Start Quiz →

🔒

Deep Dive

TIER 2 • SCHOLAR BADGE

15 Questions ~10 min 80% to pass

🔒 Pass Fundamentals to Unlock

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Expert

TIER 3 • MASTER BADGE

20 Questions ~15 min 85% to pass

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