3.6.4 redistribution of income and wealth Flashcards
1
Q
What is wealth?
A
A stock of assets, such as a house, shares, land, cars and savings.
2
Q
What is income?
A
Money received on a regular basis.
3
Q
What is the poverty trap?
A
A mechanism which means people are forced to stay poor and cannot escape from poverty.
4
Q
How does the poverty trap affect those on low incomes?
A
They do not have an incentive to work. If someone on a low income chooses to work long, their income will be limited by taxes, National Insurance Contributions and the loss of benefits they are no longer eligible for.
5
Q
What is the personal allowance before tax in the UK?
A
£12750.
