Poverty and Inequality (Quizlet Revision Activity)

Here is a new Quizlet revision activity covering key terms in the economics of poverty and inequality. Check and test your understanding!

Key term summary on poverty and inequality

• Absolute poverty When someone is not able to satisfy his or her minimum requirements for food, clothing or shelter
• Equality of opportunity When life outcomes depend only on factors for which persons are responsible, and not on disadvantageous factors outside of their control
• Equality of outcomes A state in which people have similar economic conditions
• Extreme poverty Percentage of a country's population living on less than $1.90 a day adjusted for purchasing power parity. (World Bank definition)
• Gini Coefficient Measure of income inequality where zero represents complete equality and 1 represents complete inequality.
• Human capital Factors such as knowledge, skills and health, which increase the productivity of the individual
• Living Wage A voluntary pay floor offered by more than 5,000 UK firms which lies above the statutory minimum hourly rate
• Median income The amount that divides the income distribution into two equal groups
• Palma Ratio The ratio of income flowing to the top 10% of income households divided by the income going to the poorest 40% of people.
• Poverty A pronounced and often persistent deprivation in economic well-being
• Poverty Trap Disincentives to look for work or work longer hours because of the effects of the tax & benefits system.
• Relative poverty line In the UK, this is a household with annual income less than sixty percent of the median.
• S80-S20 Ratio Share of income or consumption received by the richest and poorest quintiles (20%) in society.
• Ultra poverty Those who spend more than 80 per cent of their income on food but obtain less than 80 per cent of their food energy needs
• Universal Basic Income When all adults receive a no-strings-attached sum from the state to cover the basic cost of living. This is paid to everyone regardless of wealth.
• Universal Credit Single monthly benefit designed to replace 6 separate benefits for people who are on low income or out of work
• Wasting People with a low weight for height, generally the result of weight loss associated with a recent period of starvation or illness
• Working poverty People whose incomes fall below a given poverty line due to lack of work hours and/or low wages.