9 - the distribution of income and wealth

Question 1

wealth

Answer 1

a stock of valuable assets

Question 2

marketable wealth

Answer 2

wealth that can be transferred to others

Question 3

non-marketable wealth

Answer 3

wealth specific to a person, which cannot be transferred

Question 4

distribution of wealth

Answer 4

how wealth is shared out between the population

Question 5

income

Answer 5

a flow of money to a factor of production. (e.g wages, state benefits)

Question 6

distribution of income

Answer 6

how income is shared out between the factors of production

Question 7

lorenz curve

Answer 7

a diagrammatic representation of the distribution of income and wealth

Question 8

gini coefficient

Answer 8

a statistical measure of the degree of inequality of income or wealth

Question 9

absolute poverty

Answer 9

when an individual or household’s income is insufficient for them to afford basic shelter, food and clothing

Question 10

relative poverty

Answer 10

when people are poor in comparison to others

Question 11

poverty audit

Answer 11

assessment of the governments performance in eradicating poverty

Question 12

poverty trap

Answer 12

when individuals or households are no better off following a pay increase because tax paid increases and benefits are withdrawn

Question 13

voluntary unemployment

Answer 13

when a worker chooses not to accept a job at the going wage rate

Question 14

national minimum wage

Answer 14

a statutory minimum wage introduced to boost the earnings of the low paid