Chapter 13 Section 2 & 3: Poverty and Income Distribution & Caus

Is a curve that shows the degree of income inequality in a nation.

• Poverty Threshold

• Demographic trends

• Change in labor force

• Lorenz curve

  It is the minimum income needed to pay for the basic expenses of living.

• Poverty Threshold

•    Poverty

• Poverty rate

• Lorenz curve

  It is the percentage of people living in households that have income below the poverty threshold.

• Poverty Threshold

•    Poverty

• Poverty rate

• Lorenz curve

  It results when increase in the costs of production push up prices.

• Hyperinflation

• Demand-pull inflation

•   Cost-push inflation

• Deflation

It is a rapid, uncontrolled rate of inflation in excess of 50 percent per month.

• Hyperinflation

• Demand-pull inflation

• Cost-push inflation

• Deflation

   It result when total demand rises faster than the production of goods and services.

• Hyperinflation

• Demand-pull inflation

•   Cost-push inflation

• Deflation

A wage-price spiral is a cycle that begins with increase wages, which lead to higher production costs, which in turn result in high prices, which result in demands for even high wages.

• True

• False

Social Security, unemployment insurance are some of the programs that are designed to prevent poverty.

• True

• False

What is the relationship between cost-push inflation and the wage-price spiral?

• Part of the wage-price spiral is a type of cost-push inflation: when higher wages push up the cost of production

• Part of the wage-price spiral is a type of demand-push inflation: resulting in loss

• Neither of the above

•   It will reduce economy

   Deflation is a decrease in the general price level.

• True

• False