Flashcards in Chapter 9 The Distribution Of Income And Wealth Deck (22)
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Wealth
A stock of valuable assets
1
Marketable wealth
Wealth that can be transferred to others
2
Non marketable wealth
Wealth specific to a person, which cannot be transferred
3
Distribution of wealth
How wealth is shared out between be population
4
Sources of wealth
Inheritance
Savings
Entrepreneurship
Chance
5
The causes of wealth inequality
Inheritance
Marriage
Income inequality
Chance
6
Income
A flow of money to a factor of production. An individual's income may include wages and state benefits.
7
Distribution of income
How income is shared out been the factors of production.
8
Lorenz curve
A diagrammatic representation of the distribution of income and wealth
9
Gin coefficient
A statistical measure of degree of inequality of income or wealth
10
Causes of income equality
Impact of the state
Wealth inequality
Household competition
Level of skills and qualifications
Difference in earnings
11
Absolute poverty
When an individual or households income is insufficient for them to afford basic shelter, food or clothing
12
Relative poverty
When people are poor in comparison to others in society
13
What is used to measure poverty
Poverty audit
14
Causes of poverty
Unemployement
Low wage
Sickness and disability
Old age
The poverty trap
Imperfect information
15
Poverty trap
When individuals or households are no better off following a pay increase because tax paid increases and benefits are withdrawn.
16
Policies used to tackle poverty
A national minimum wage
Cutting the bottom date of income taxes
Tackling unemployment
Training and education
Exploiting trackless down effects
Increasing benefits
Tax credits
17
Vuluntary unemployment
When a worker chooses not to accept a job at the going wage rate
18
Equity
Is about social justice and fairness, distribution goals. It requires that there is a fair distribution of welfare, that is a fair distribution of the economy' gds + s's
19
Minimum wage
A minimum wage is a price floor - employers cannot legally undercut the current minimum wage rate per hour
20
Vertical equity
Different treatment of people with different characteristics to promote greater equity
21
