Equality

Question 1

What are the two ways of measuring inequality?

Answer 1

1) The Lorenz curve

2) Gini coefficient

Question 2

What is the difference between absolute and relative poverty?

Answer 2

Absolute poverty is when individuals do not the resources to be able to consume sufficient necessities to survive.
Relative Poverty is poverty which is defined relative to existing living standards for the average individual.

Question 3

What are the causes of income inequality?

Answer 3

1) Some people simply earn more than others.
2) Some people are unemployed or retired.
3) Some people have more Physical and financial wealth.
4) Household Composition.
5) Government Policy (inequality depends on the governments ability to redistribute wealth).