3.6.1 poverty and inequality Flashcards
What is absolute poverty?
Living below subsistence, meaning the person is unable to meet their basic needs of food, clean water, sanitation, health, shelter and education.
What is the measurement for those living in absolute poverty?
Those living on less than $1.25 per day.
What is relative poverty?
Can afford basic necessities but might struggle to participate in activities that are common for others in society.
How is relative poverty measured in the UK?
Those with below 60% of the median income.
How is relative poverty measured in the US?
A basked of goods which maintains the average standard of living of society is used.
What does the Human Poverty Index (HPI) measure?
- Life expectancy
- Education
- Ability of citizens to meet basic needs
What is HPI-1?
Measures poverty in developing countries.
What is HPI-2?
Measures poverty in developed countries.
What is measured in HPI-1? [3]
- Probability of living to 40
- Adult literacy rate
- Percentage of underweight children and percentage of people not using improved water sources
What is measured in HPI-2? [3]
- Probability of not surviving to at least age 60
- Percentage of adults which do not have literacy skills
- Poverty is calculated by those living below the poverty line (below 50% of median income)
What does the Lorenz curve measure?
Distribution of income and wealth in a country.
What does the line of perfect equality show?
The distribution of income when the richest x% of the population owns x% of the cumulative income.
What is the formula for the Gini coefficient?
A/(A+B)
What does a gini value of 0 mean?
Perfect equality.
What does a gini value of 1 mean?
Perfect inequality.
