Poverty Flashcards
1
Q
what are the ways of measuring the distribution of income?
A
- Lorenz curve
- Gini coefficient
2
Q
what lorenz curve?
A
a diagrammatic representation of the distribution of and wealth
3
Q
what is the gini coefficient?
A
a statistical measure of the degree of inequality of income and wealth - it is read off of the lorenz curve
4
Q
what is the gini coefficient equation?
A
a / a+b
5
Q
what are some govt interventions to reduce poverty?
A
- progressive income tax
- benefits
- state provision of education and healthcare
- inheritance tax
- free school meals
- capital gains tax
- minimum wage
- child benefit
- corporations tax
- windfall tax
- laws on equality
- increase stamp duty
6
Q
why should we care about poverty?
A
- taxpayer money contributes to helping poverty
- “hidden Einstein” argument
- neg externality - crime police spending
7
Q
what is absolute poverty?
A
when a individuals households income is insufficient to satisfy basic human needs
8
Q
what is relative poverty?
A
cant enjoy the same standard of living as other people
9
Q
why do we stay poor?
A
- uni fees
- cost of living - recent years
- imperfect information
- renting
- poorer areas have worse education
