4.2 Poverty and Inequality Flashcards
1
Q
Absolute Poverty definition
A
when people are unable to afford basic necessities eg. food water education
2
Q
Relative poverty definition
A
when income is a certain % below the median
3
Q
causes of changes in absolute poverty (3)
A
economic growth
government tax and benefit policies
4
Q
causes of change in relative poverty
A
trade liberalisation-> higher output-> more labour demand-> multiplier effect
5
Q
income inequality vs wealth inequality
A
income inequality refers to the unequal distribution of income, wealth inequality is unequal distribution of assets
6
Q
gini coefficient equation
A
a/a+b
7
Q
A
