CHAPTER 72 INEQUALITY AND POVERTY

Question 1

Absolute poverty

Answer 1

Absolute poverty exists when individuals do not have the resources to be able to consume sufficient necessities to survive.

Question 2

Equity

Answer 2

Fairness

Question 3

Gini coefficient

Answer 3

A statistical measure of inequality of income. Its value ranges from 0, where there is perfect equality of income, to 1 where income is highly unequal with one person having all the income and everyone else having no income. The Gini index is the Gini coefficient times 100.

Question 4

Horizontal equity

Answer 4

The identical treatment of identical individuals or groups in society in identical situations.

Question 5

Lorenz curve

Answer 5

A graphical representation of the degree of income or wealth inequality in society.

Question 6

Personal distribution of income

Answer 6

The distribution of the total income of all individuals.

Question 7

Relative poverty

Answer 7

Poverty which is defined relative to existing living standards for the average individual.

Question 8

Vertical equity

Answer 8

The different treatment of individuals or groups which are dissimilar in characteristics.