5- POVERTY AND INEQUALITY Flashcards
______ occurs when individuals do not possess the same level of material wealth or overall living economic conditions.
Inequality
_____ the disproportionate of total income among households.
Income Inequality
The distribution of income according to size or class of persons.
Personal or Size distribution income
A graphical representation in income inequality or wealth inequality developed by Max Lorenz in 1905.
Lorenz Curve
Who developed the Lorenz Curve and when?
graphical representation in income inequality or wealth inequality developed by Max Lorenz in 1905.
An aggregate numerical measure of income inequality ranging from 0 to 1.
Gini Coefficient
4 Characteristics of Gini coefficient? (PAST)
• Anonymity
• Scale Independence
• Population Size Independence
• Transfer Principle
The distribution of income to factors of production without regard to the ownership of the factors.
Functional distribution of income
What are the factors of Functional distribution of income?
- Land
- Labor
- Entrepreneurs
- Capital
Measuring Absolute Poverty?
- Headcount Index
- Total Poverty Gap
- Human Poverty Index
- Multidimensional Poverty Index (MPI)
Who are the poor?
- Rural
- Women
- Ethnic Minorities
- People in poor countries
Policies for Poverty Alleviation and Reducing Inequality
- Human Capital
- Increase school enrollment for girls
- Rural Development
