unit 4: income equality (poverty)

Question 1

How to measure poverty?

Answer 1

poverty threshold or line, when a family’s total income cannot support the family’s basic needs

Question 2

Problems with poverty threshold

Answer 2

1. needs are not the same in every state
2. taxes, childcare, healthcare, transportations costs

Question 3

Causes of poverty

Answer 3

1. lack of education = lower wages
2. location - people living in areas with little business or industry = increased levels of poverty
   3.racial and gender discrimination- unfair practices resulting in lower pay for women + minorities
3. growth of low- skill service jobs
4. family structure - families headed by a single parent are likely to be poor

Question 4

Anti-poverty policies

Answer 4

1. anti-
   poverty programs —> incentive programs (local programs
2. income redistribution
   —> housing subsides, healthcare, food stamps (debit cards), free school lunches, WIC —> earned income tax credit

Question 5

enterprise zones (anti-poverty policies 3.)

Answer 5

give tax breaks to business that open in “dead zones”

Question 6

2. income redistribution (anti-policy programs)

Answer 6

—> housing subsides, healthcare, food stamps (debit cards), free school lunches, WIC —>