9 - the distribution of income and wealth Flashcards
a stock of valuable assets
wealth
wealth that can be transferred to others
marketable wealth
wealth specific to a person, which cannot be transferred
non-marketable wealth
how wealth is shared out between the population
distribution of wealth
a flow of money to a factor of production. (e.g wages, state benefits)
income
how income is shared out between the factors of production
distribution of income
a diagrammatic representation of the distribution of income and wealth
lorenz curve
a statistical measure of the degree of inequality of income or wealth
gini coefficient
when an individual or household’s income is insufficient for them to afford basic shelter, food and clothing
absolute poverty
when people are poor in comparison to others
relative poverty
assessment of the governments performance in eradicating poverty
poverty audit
when individuals or households are no better off following a pay increase because tax paid increases and benefits are withdrawn
poverty trap
when a worker chooses not to accept a job at the going wage rate
voluntary unemployment
a statutory minimum wage introduced to boost the earnings of the low paid
national minimum wage
