Inequality (11 Economics)

What is absolute poverty?

• When an individual’s income falls below a set threshold necessary for basic necessities.
• When an individual’s income is lower than the average income in their country.
• When an individual has less wealth compared to others in their social group.
• When an individual is unable to afford luxury items.

Which measure is used to determine absolute poverty?

• Poverty gap index
• Median income
• GDP per capita
• Poverty line

What defines relative poverty?

• An individual’s income is significantly lower than the majority of the population.
• An individual’s income is less than the absolute poverty line.
• An individual’s wealth is less than a set threshold.
• An individual’s consumption is below the basic needs.

How is relative poverty typically measured?

• As a percentage of the income of the wealthiest 10% of the population.
• As income below a fixed amount adjusted for inflation.
• As income less than 50% of the median household income.
• As income below the government’s minimum wage.

What characterizes an egalitarian society?

• High levels of income inequality.
• Equal distribution of wealth and income among all members of society.
• Wealth is concentrated in the hands of a few individuals.
• A high degree of social stratification.

Which of the following is a common feature of an egalitarian society?

• Large disparities in income and wealth.
• Uniform access to economic resources and opportunities.
• High levels of poverty and unemployment.
• Significant income and wealth inequality.

What is an income transfer?

• Payment made by individuals for goods and services.
• Redistribution of income from one person to another, typically through government programs.
• Transfer of wealth between different countries.
• Movement of income from the government to businesses.

Which of the following is an example of an income transfer?

• Paying for a new car
• Receiving unemployment benefits
• Purchasing groceries
• Investing in stocks

What does 'payments wealth' refer to?

• The total value of assets an individual owns.
• The value of the transfers and subsidies an individual receives from the government.
• The total amount of income an individual earns.
• The total value of all investments made by an individual.

Which of the following would typically not be considered part of payments wealth?

• Social security payments
• Pension benefits
• Savings account balance
• Disability benefits