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10 Cards in this Set
- Front
- Back
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Absolute Poverty |
A situation where indivduals cannot afford the basic necessities for a healthy & safe existence e.g shelter, water, nutrition, clothing & healthcare |
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Relative Poverty |
A situation where household income is a certain percentage less than the median household income in an economy. |
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Causes of changes in Absolute Poverty |
Economic growth, government tax & benefit policies. |
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Causes of changes in Relative Poverty |
Rising asset prices, Trade liberalisation (removing barriers to international trade e.g tariffs), Government Benefits |
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Income Inequality |
Refers to the unequal distribution of income to households e.g rent, wages |
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Wealth Inequality |
Refers to the differences in the amount of assets that households own. |
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The Lorenz Curve |
A visual representation of the inequality that exists between households in an economy, the line of equality represents perfect income distribution (not desirable). |
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The Gini Coefficient |
Measures the distribution of income in a population, the closer the value to 1 the worse the income inequality. Gini Coefficient = A/ (A+B) |
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Causes of Income & Wealth Inequality |
Education, Training & Skills, Trade Unions, Benefit System, Pension Payments. |
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Graph relating Economic Development to Income Inequality |
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