lesson 14- poverty and inequality

Question 1

what is equity

Answer 1

how fair something is

Question 2

what is absolute poverty

Answer 2

when you dont have the basics needed to survive

Question 3

what is relative poverty

Answer 3

earning 60% below the median income

Question 4

what are the individual and economy wise problems of poverty

Answer 4

-quality of life decreases

-no contribution as not working or spending, less tax revenue, more benefits

Question 5

draw the lorenz curve and line of equality

Answer 5

https://www.google.com/url?sa=i&url=https%3A%2F%2Fwww.economicsonline.co.uk%2Fdefinitions%2Fthelorenzcurve.html%2F&psig=AOvVaw1R8jJl0dhBLf0f2SYZpBYi&ust=1745569736345000&source=images&cd=vfe&opi=89978449&ved=0CBQQjRxqFwoTCIiv3pOg8IwDFQAAAAAdAAAAABAE

Question 6

what does it mean when the lorenz curve is further away from the line of equality

Answer 6

more unequal

Question 7

what is the gini coefficient

Answer 7

a number from 0-1 which signifies inequality
-1 means absolute inequality
-0 is absolute equality
-South Africa has highest- 0.65
-Norway/Sweden have lowest -0.3