POVERTY, INEQUALITY AND THE WS

Question 1

Absolute poverty

Answer 1

Income less than necessary to buy basic necessities. level of income below which your level of income is classified to be poor. absolute level at which if you go beneath your survival is threatened.
-> poverty rate decreases with economic growth
+ common measures in: POOR and DVPING countries

Question 2

Relative poverty

Answer 2

Income falling below a certain share of what others in community receive. measure of inequality in the bottom half of the income distribution, not poverty. percentage level below the median income of a family, not talking about survival but rather people whose income are so low in the society that they are being excluded from society.
+ common measure for RICH countries

Question 3

Poverty rate

Answer 3

% of ppl below the poverty line

a measure of the extent of poverty among the population

Question 4

Poverty gap

Answer 4

difference btw the poverty line and the average income of those below it
a measure of the depth of poverty

Question 5

Depth of poverty

Answer 5

measures how bad the poverty is, below those who are in the poverty line. if closely hugging the poverty line, then less serious poverty rate.

Question 6

Gini coefficient

Answer 6

• accepted way to measure income ineq
• rating on a scale from 0 to 1
• the further the curve the deeper the ineq

!! Gini INDEX = gini COEFF expressed as a % and = to the gini coeff x 100