Poverty and Inequality Flashcards
1
Q
What is the difference between absolute and relative poverty
A
Absolute poverty is when a person is unable to meet their basic needs. Relative poverty is measured in comparison to the average in the country (<60% medium income = poverty)
2
Q
How to calculate Gini coefficient
A
A/A+B , A= area inside lorenz curve, B=Area below lorenz curve. 0 is good 1 is very bad
3
Q
What is the difference between income and wealth
A
income is the inflow of money, wealth is the value of assets you have
4
Q
A
