Income distribution and inequality Flashcards
1
Q
How is wealth defined
A
stock of assets
eg house, land
2
Q
How is income defined
A
money received on a regular basis
3
Q
what does Lorenz curve measure
A
the distribution of income and wealth in a country
4
Q
What is the Gini coefficient
A
Gini= A/A+B
5
Q
what does the value 0 indicate
A
perfect equality
6
Q
what does the value 1 indicate
A
perfect inequality
7
Q
what is absolute poverty
A
where you can’t afford basic necessities such as shelter, food and water
8
Q
what is relative poverty
A
the comparison to the average in the country
9
Q
What are three causes of income inequality
A
- Wage discrimination
- Deindustrialisation
- education achievement
10
Q
why are there differences in income equality between countries
A
developing countries experience more famines, drought and wars
11
Q
what are three impacts of income inequality
A
- poor health
- limited rate of economic growth
- education
12
Q
A
