TERM 3 Flashcards
Define “standard of living”
Changes in the performance of an economy as measured by indicators such as inflation and unemployment rates and the rate of economic growth can have an impact on both material and non-material living standards.
What is standard of living?
refers to the degree to which a person can afford necessities, comforts and luxuries
How is standard of living measured?
By indicators such as inflation and unemployment rates, income, employment, class disparity, poverty rate, housing affordability, and hours of work required to purchase necessities
What is income inequality?
“the unequal distribution of income in society”
How is wealth measured?
through assets held in the main home, superannuation, shares and other financial assets, investment real estate and other non-financial assets, such as cars
How much more income does someone in the highest 20% of the income scale have compared to someone in the lowest 20% in Australia?
Almost six times as much.
What does the income disparity in Australia illustrate?
The significant gap between the highest and lowest income households.
What percentage of all wealth is held by the top 20% in Australia?
64%.
What percentage of all wealth is held by the bottom 60% in Australia?
17%.
How much wealth does the average household in the highest 20% wealth group in Australia hold?
$3.25 million.
How much more wealth does the highest 20% have compared to the lowest 20% in Australia?
Over ninety times more.
What are the three main components of income?
1 - WAGES & SALARY
2 - INVESTMENTS INCLUDING SUPERANNUATION
3 - SOCIAL SECURITY PAYMENTS
What barriers do people in poverty face due to inequality?
Difficulty finding paid work and gaining skills to compete in the job market.
Why is excessive inequality harmful to society?
It diminishes economic growth and is detrimental to both the economy and people.
What are some visible impacts of inequality in society?
People going without meals, sleeping on the streets, and lacking access to healthcare.
