Poverty And Inequality Flashcards

1
Q

What is absolute poverty?

A

Measures the number of people living below a certain income level needed to afford basic goods

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2
Q

What is relative poverty?

A

When the level of income in a household is low compared to others - below 50% of national wage

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3
Q

Measures of poverty (2)

A
  1. The Lorenz curve- the further from the Lorenz curve you go the more inequality there is
  2. The Gini Coefficient- measures inequality based on the Lorenz curve -
    A Gini coefficient of 0 is perfect equality
    A Gini coefficient of 1 is perfect inequality
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4
Q

How absolute poverty can be averted? (2)

A
  1. Reduced by economic growth- a small rise in wages can help a large proportion of people
  2. Can be solved by a greater distribution of income
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5
Q

How to absolute poverty occur? (4)

A
  1. War
  2. Corrupt government
  3. Natural disasters
  4. Geographical climate
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6
Q

Causes of relative poverty/ inequality (4)

A
  1. Inequality in wages and earnings growth - those with few skills struggle
  2. Unemployment
  3. Falling relative value of state benefits- pension benefits rising with inflation may fall behind real wages
  4. Regressive tax- burden of tax on poor
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7
Q

Wage inequality can occur because of– (4)

A
  1. De-industrialisation- d increase for skilled labour
  2. Globalisation put pressure on firms to cut costs
  3. Growth in zero hour contracts
  4. Decline in trade union
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