3.4 Economics of inequality and poverty Flashcards
social mobility
ease at which people may climb or fall in the economic strata of society, based on how society efficiently allocates the value of their labor
distribution of wealth
one way provided by the government that can help individuals to achieve this by allocating resources more evenly among the different groups in society
equity
concept of fairness or evenness and is considered an economic objective; subjective and difficult to measure and agree on
equality
situations where economic outcomes are the same (or similar) for different people or social groups
economic inequality
usually opposed to equity, and refers to how wealth, assets, or incomes are distributed differently among individuals and the population as a whole
distribution of income
pattern of income spread across the population
GINI coefficient formula
A/A+B
which GINI coefficient value has the most unequal wealth distribution
1
absolute poverty
a situation where individuals earn below the international poverty line and do not have access to basic requirements of life e.g. food, shelter
relative poverty
a low level of income that is country-specific and relative to the average earnings in that country
single indicator
one factor, e.g. gdp per capita, that is used to measure the development of a country, measures only one characteristic of development of a country
international poverty line
takes into consideration poverty lines for each country and based on the value of goods needed to sustain one adult
criticisms of the international poverty line
does not take into account basic facilities e.g. clean water and sanitation and their effects on the quality of life. also it is subjective e.g. what constitutes shelter, where do you draw the line
