lesson 14: poverty and redistribution

Question 1

how many people are in poverty in the uk?

Answer 1

14 million

Question 2

what is absolute poverty?

Answer 2

unable to purchase basic necessities

Question 3

what is relative poverty?

Answer 3

when people are poor in comparison to society

Question 4

what are causes of poverty?

Answer 4

unemployment
low wages
sickness and disability
old age
the poverty trap
single parents

Question 5

what is the poverty trap?

Answer 5

when people pay tax when working so earn less than they would if they were on benefits so they get trapped on benefits

Question 6

what is the main policy used to reduce poverty and inequality?

Answer 6

increase progressive tax + transfer payments

Question 7

what is an example of a progressive tax?

Answer 7

income tax

Question 8

what is an example of a regressive tax?

Answer 8

vat

Question 9

whats an attempt to redistribute wealth?

Answer 9

inheritance tax

Question 10

what does means tested mean?

Answer 10

income dependent

Question 11

benefits should be…

Answer 11

means tested to reduce inequality