4B

Question 1

Absolute poverty

Answer 1

When an individual does not have sufficient income to sustain a basic acceptable standard of living.
Less than $2.15 a day

Question 2

Relative poverty

Answer 2

A level of household income that is considerably lower than the median level of income within a country.
Uks line is less than 60% of median income

Question 3

Causes absolute poverty

Answer 3

-population growth>GDP
-incomes less than $2.15 a day
-absence of govt provision/facilities
-corruption-business govt
-high debts and IR
-civil wars
-low employment rates
-reliance on primary sector goods

Question 4

consequences of Absolute poverty

Answer 4

-low life expec
-lower school enrolment
-inequality
-micro-low demand-reduced consumer surplus
-macro-lower consumption, lower ad, lower economic growth

Question 5

Causes of income inequality

Answer 5

-low minimum wage
-low education
-regressive tax system

Question 6

-ves of income inequality

Answer 6

-high u
-social problems
-corruption
-less access to healthcare/education, so left behind
-a distractive to work

Question 7

+ves of income inequality

Answer 7

-incentive to work
-tax rev from super rich
-provide jobs and GDP, rich entrepreneurs

Question 8

Policy response to income inequality

Answer 8

-increased tax on rich
-increase benefits
-increased minimum wage
-job creation
-anything reduces rich or increases poor

Question 9

What is the Gini Coefficient

Answer 9

0= perfect equality, 100 implies perfect inequality

Question 10

What is Lorenz curve

Answer 10

Visual interpretation of income or wealth inequality. it is used to plot cumulative share of income against cumulative share of population.

percentage of income by poorest to richest of population.