Flashcards
Poverty and Inequality
Cards in this deck (12)
- 1Name 8 factors affecting inequality between countries1) Infrastructure
2) Education and Skills
3) Demographic factors
4) Primary product dependancy
5) Poor Governance
6) Savings Gap
7) Access to credit
8) Civil War - 2What is the difference between income and wealth?Income is a flow of money measure over a period of time
Wealth is a stock of assets measured at a single point in time - 3What are the rewards for each of the 4 factors of production?Land = rent
Labour = wages
Capital = Interest
Enterprise = profits
- 4What is the Lorenz curve?A graphical representation of the degree of income or wealth inequality in a society
Plots the cumulative percentage of population against cumulative percentage of total income - 5What is the Gini Coefficient?A statistical measure of inequality, ranges from 0 to 1 where 1 is a highly unequal society.
- 6Give 4 factors that have increased inequality and why1) Globalisation - Offshoring of jobs
2) Technological Change - only benefitting skilled workers
3) Decreased unionisation - lower wages
4) Monetary policy (Low interest rates and QE) - Higher inflation - 7Name 8 causes of wealth and income inequality1) Education and training
2) Wage rates
3) Unemployment
4) Social benefits
5) Progressive and regressive taxes
6) Inheritance
7) Ownership of assets
8) Pensions
- 8What 3 reasons suggest that inequality itself is a constraint on globalisation?1) The very poor don't have collateral so cannot open businesses
2) Absolute poverty is more likely when inequality is high
3) Social consequences, e.g. crime - 9What are the two main reasons that inequality could be seen as essential in an economy?1) Private ownership of resources
2) Profit motive - 10What are the 2 definitions of absolute poverty?World bank - Percentage of people that live on less than $1.90 a day (PPP)
UN = Condition characterised by severe deprivation of basic human needs, including foods, safe drinking water, health, shelter and education
- 11Name 4 factors that contribute to absolute poverty1) Climate change
2) Poor healthcare
3) Primary product dependancy
4) Conflict - 12What 3 factors help to reduce absolute poverty?1) Better education
2) Globalisation
3) Healthcare Improvements
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- A level Economics (Unit 4) Flashcards on Poverty and Inequality, created by Sophie Knight on 02/03/2017.
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- Sophie Knight
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