Poverty Flashcards
Definition of absolute poverty?
When people are unable to afford sufficient necessities to maintain life
What are the basic needs?
Water, shelter, food , clothing , sanitation, health, education
How is development of a country related to absolute poverty?
Absolute poverty decreases , as level of GDP grows, due to increased investment opportunities + provision of goods from government
What is the definition of relative poverty?
If income falls below average income threshold for the economy.
What are the causes of changes absolute and relative poverty?
Economic growth, education/training, social benefits, taxes, wage rates, ownership of assets.
What is the definition of income?
Cashflow over a period of time (flow concept)
What is the definition of wealth?
A stock concept / Something that stores value
What does the human development index (HDI) measure?
Economic development calculated by the UN
What are the 3 components that measure HDI?
Health, quality of education, income
What are the pros of using HDI?
Comparison of countries, measure of standard of living, broader than GDP
What are the cons of using HDI?
Takes only 3 things into account, overlooks inequality, does not take into account environment, doesn’t factor corruption
What involves Economic development?
The welfare and standard of living of individuals
What are features of developed country?
High GDP, high education, productivity, high life expectancy, may be de-industrialised
What are features of underdeveloped countries?
Low GDP, low levels of physical & human capital. High mortality rate/low life expectancy
What is the Gini Co-efficient?
a statistical measure of economic inequality in a population
