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Economic Development > Poverty, Inequality, and Development > Flashcards

Poverty, Inequality, and Development Flashcards

1
Q

It refers to uneven distribution of total national income among households.

A

Income inequality

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2
Q

What are the two principal measures of income inequality?

A

Size distribution (Kuznets Ratio)
Lorenz Curve

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3
Q

This is the most commonly used measure to quantify individual persons or households.

A

Size distribution

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4
Q

This method does not consider the manner on how the income was earned or received.

A

Size distribution

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5
Q

What matters here is how much each individual earns irrespective of whether the income is derived solely from employment or from other sources like interest, profits, rents, gifts, or inheritance.

A

Size distribution

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6
Q

This measure ignores the locational and occupational sources of income.

A

Size distribution

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7
Q

How do economists and statisticians arrange the individuals’ personal income?

A

By ascending order

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8
Q

After arranging all individuals by ascending personal income, what happens next?

A

Dividing the total population into distinct groups or sizes

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9
Q

What are the common methods to divide the population according to ascending income levels?

A

Quintiles (Fifths)
Deciles (Tenths)

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10
Q

It refers to the 20% proportion of any numerical quantity.

A

Quintile (Fifths)

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11
Q

A population divided into quintiles would be divided into how many groups of equal sizes?

A

Five

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12
Q

It refers to the 10% proportion of any numerical quantity.

A

Deciles (Tenths)

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13
Q

A population divided into deciles will be divided into how many equal groups?

A

Ten

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14
Q

Kuznets Ratio is named after the Nobel laureate named?

A

Simon Kuznets

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15
Q

What is the common measure of income inequality where the ratio of the incomes received by the top 20% and bottom 40% are computed?

A

Kuznets Ratio

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16
Q

What has often been used as a measure of the degree of inequality between high- and low-income groups in a country?

A

Kuznets Ratio

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17
Q

What is used by Kuznets ratio if the ratio of the incomes received by the top 20% and bottom 40% are computed?

A

Quintiles

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18
Q

What is used by Kuznets ratio if the ratio of the incomes received by the top 10% and bottom 10% are computed?

A

Deciles

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19
Q

It is a graphical representation of income inequality or wealth inequality.

A

Lorenz Curve

20
Q

When and who developed the Lorenz curve?

A

Max Lorenz (an American Economist)
1905

21
Q

Lorenz curve plots percentiles of the population on the what axis?

A

Horizontal Axis

22
Q

It shows the cumulative share of income from different sections of the population.

A

Lorenz curve

23
Q

It is the situation of being unable or only barely able to meet the subsistence essentials of food, clothing, and shelter.

A

Absolute Poverty

24
Q

The extent of poverty is measured through what?

A

Headcount index

25
Q

It refers to the number of people who are unable to command sufficient resources to satisfy basic needs.

A

Headcount index

26
Q

It is the minimum income required to meet the basic food needs, satisfying the nutritional requirements set by the FNRI.

A

Food threshold

27
Q

It is the minimum income required to meet the basic food and non-food needs.

A

Poverty threshold

28
Q

What are the high-poverty groups in a given nation?

(WER)

A

Women and Poverty
Ethnic MInorities and Poverty
Rural Poverty

29
Q

What is the most valid generalizations about the poor?

A
  • They are disproportionately located in rural areas
  • Primarily engaged in agricultural and associated activities
  • Likely to be women and children
  • Often concentrated amon minority ethnic groups and indigenous peopl
30
Q

Who makes up a substantial majority of the world’s poor?

A

Women

31
Q

In 1996, how many percentages of women made up the world’s poor?

A

70%

32
Q

In 1996, how many percentages of women made up the world’s illiterate?

A

65%

33
Q

What are the policy options on income inequality and poverty?

(MMMA)

A

Mitigating the size distribution
Moderating (reducing) the size distribution at the upper levels
Moderating (increasing) the size distribution at the lower levels
Altering the functional distribution

34
Q

It refers to the amounts of income paid to various individuals or households.

A

Functional distribution

35
Q

It represents the total income of individual persons or households.

A

Size distribution

36
Q

This level represents the individuals with the highest amount of income in a given population.

A

Upper Levels

37
Q

We mitigate the size distribution through what?

A

Through functional income distribution of an economy

38
Q

The functional income distribution of an economy can be translated into what?

A

Into a size distribution

39
Q

How to translate the functional income distribution of an economy into a size distribution?

A

By knowledge of how ownership and control over productive assets and labor skills are concentrated and distributed throughout the population.

40
Q

What does the distribution of the asset holdings and skill endowments ultimately determine?

A

The distribution of personal income

41
Q

Moderating the size of income distribution at upper levels can be achieved through what?

A

Progressive taxation of personal income and wealth

42
Q

It refers to money that is available to households for spending and saving after personal income taxes have been deducted.

A

Diposable income

43
Q

This level represents individuals with the least amount of income in a given population.

A

Lower Levels

44
Q

Moderating the size of income distribution at lower levels can be achieved through what?

A

Public expenditures of tax revenues to raise the incomes of the poor either directly or indirectly

45
Q

What are the examples of directly raising the income of the poor?

A

Conditional or nonconditional cash transfers

46
Q

What are the examples of indirectly raising the income of the poor?

A

Public employment creation

Economic Development (7 decks)

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