poverty Flashcards
(23 cards)
What is Size Distribution of Income?
Focuses on how income is shared among individuals or households. Shows inequality in income levels.
What is Functional Distribution of Income?
Focuses on how income is earned from the factors of production (land, labour, capital, entrepreneurship). Shows income by type: rent, wages, interest, and profit.
What is Income Inequality?
Refers to unequal distribution of income among individuals or groups in a society. It can lead to social unrest, lower social mobility, and reduced economic growth.
What is the Lorenz Curve?
A graph showing the cumulative income share held by different income groups.
What is the Gini Coefficient?
A number between 0 and 1 derived from the Lorenz Curve: 0 = Perfect equality, 1 = Perfect inequality.
How do Taxes help reduce income inequality?
Progressive taxation helps redistribute income.
How do Subsidies help reduce income inequality?
Lowers cost of goods/services for the poor.
What are Transfers in the context of income inequality?
Direct payments like pensions or unemployment benefits.
What is Absolute Poverty?
Inability to meet basic needs like food, shelter, clothing.
What is Relative Poverty?
Being significantly worse off than the average person in your society.
What factors contribute to poverty?
Poor education and training, lack of ownership of resources, large family size, single-parent or female-headed households, discrimination, restrictions on economic activity, social and environmental barriers.
Which groups are more susceptible to poverty?
People with special needs, elderly, youth, single-parent households, indigenous people. Limited access to jobs, training, legal protections, and income sources.
What is the Poverty Line?
Income level below which people are considered poor.
What is the Basic Needs Approach?
Whether individuals can afford essentials.
What is the Head Count method?
Number/percentage of people below poverty line.
What is the Human Development Index (HDI)?
Composite index by UNDP measuring life expectancy, education, and income.
What are Transfer payments?
Payments such as pensions and welfare to alleviate poverty.
What role does Free education and healthcare play in poverty alleviation?
Provides essential services to the poor.
How does subsidized housing help alleviate poverty?
Makes housing affordable for low-income individuals.
What is the purpose of Minimum wage laws?
Ensures a basic income for workers.
What are Government-created jobs?
Jobs provided through special works programmes to reduce unemployment.
What are the economic costs of poverty?
Unemployment, lower output, wasted government resources, social/environmental costs like crime and poor living standards.
What are the economic benefits of government intervention?
Better education and healthcare, improved well-being, fairer income distribution.
