Topic 2 - government intervention to improve living standards Flashcards
what does the standard of living measure
levels of wealth, comfort, material goods, and necessities available in a certain geographic area
how is standard of living different to quality of life
things such as friends are counted in quality of life however they do not impact the standard of living
how is GDP per capita measured and what does it represent
it is a common way we measure wealth in a country
limitation of GDP per capita
it does not account for the fact that not everyone earns the same amount of money
what is a share
owning part of a business which lets you gain some of their profits
why do individual invest in shares
- receiving reports and information
- share buy backs
- participating in AGM’s
risks of investing in shares
if the business goes down, you lose some of your money
what is the sharemarket
a market in which things are bought and sold, also known as a stock exchange
what should you research before buying a share
- the company
- its price to earnings ratio
- risks vs benefits
- buying stocks for the long run
wealth
properties, businesses, shareholdings in companies, other investments which are often passed down through generations. wealth can help you build more wealth
income
providing labour for a wage
link between wealth and living standards
wealthy people tend to have more disposable income and therefore higher living standards
poverty
when people are in a situation that they cannot afford essential items. they may have to skip meals to be able to pay for textbooks required for their childs education
issue with using a poverty line
the poverty line is different in different countries meaning it doesn’t work well overall
how does the ABS identify a Low Economic Resource household
solely by their income
