Poverty And Inequality Flashcards
1
Q
What is relative poverty?
A
Being poor relative to other people in the same country
UK- household income less than 60% of the median income in the country
2
Q
What goes along the vertical axis of the Lorenz curve?
A
Percentage of income
3
Q
What goes on the horizontal axis of the Lorenz curve?
A
Percentage of population
4
Q
What does the line of total equality look like on a Lorenz curve
A
A 45 degree line
5
Q
How do you calculate a gini coefficient
A
G = A/ A+B
6
Q
What are 6 govt policies to reduce inequality?
A
More benefits More progressive tax system More investment in education and training Cap large bonuses Raise NMW Improve mobility of labour
7
Q
What is absolute poverty?
A
A person has insufficient resources to meet basic human needs
WB less than $1.25 a day to live on
