Poverty and inequality Flashcards
(16 cards)
What is income?
Income is the money/earnings a person receives, usually from a job
What is wealth?
Wealth is the assets someone owns
What is equality of opportunity?
Equality of opportunity is when everyone is given the same chance/ opportunity
What is equality of income?
When everyone earns the same
What does equity mean?
Equity is about how fair the distribution of income is
What is absolute poverty?
Absolute poverty is when you dont have the basics needed to survive
What is relative poverty?
Relative poverty is when you earn 60% below the median income
What are the problems of poverty for an individual?
-Lack of food
-Bad health
-Vulnerable
-Bad lifestyle
What are the problems of poverty for an economy?
-Those in poverty cant/ will contribute less to output of the economy
-Less spending
What are the problems of poverty for a society?
-Gives a bad look
-Crime will increase
What are the problems of poverty for the government?
-More spending on benefits
-Less tax revenue
What are possible resolutions to poverty?
-How may these not work?
-You can upskill people however the government would have to pay and there is an opportunity cost
-Increase minimum wage may help save poverty however inflation may cancel this out
How is income distributed in the Uk?
The top 20% of the wealthiest people in the UK earn about 2/3 of the income
What does the Lorenz curve show?
The Lorenz curve shows inequality in a population
-The further away the Lorenz curve is from the straight line, the higher the inequality
What is the Gini-coefficient?
The Gini-coefficient is a number between 0 and 1 that signifies equality in a country
-1 means absolute inequality ( 1 person has everything)
-0 means absolute equality (communism)
