Economic Development Lecture: Poverty and Inequality

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is poverty?

A condition where a person chooses to live with limited financial resources

A state of happiness and contentment regardless of financial resources

A state or condition in which a person or community lacks the financial resources and essentials for a minimum standard of living (correct)

A situation where a person has excess financial resources for a minimum standard of living

How is poverty typically measured?

By the number of material possessions owned by the household

By the overall happiness and satisfaction of the individuals in the community

By the amount of debt owed by the community

By the per capita expenditures made by the household (correct)

What does poverty affect besides the ability to purchase goods?

Ability to participate in social events

Vulnerability towards various pressures that may prohibit an individual from enjoying life (correct)

Ability to travel for leisure purposes

Access to luxury items and services

Where does poverty typically arise from?

Multiple factors such as employment, health, education, and housing Signup and view all the answers

What is the main focus when discussing poverty?

Government's responsibility in addressing poverty Signup and view all the answers

What is the main indicator of poverty and vulnerability?

Purchasing power Signup and view all the answers

What $ amount was the international poverty line updated to in September 2022?

$2.15 per person/day Signup and view all the answers

What is the goal of the International Poverty Line set by the World Bank?

To track global extreme poverty Signup and view all the answers

How does the poverty line vary between the United States and Ethiopia?

It is more than 10 times lower in Ethiopia than in the United States Signup and view all the answers

What does the total family income divided by the family size help determine?

Per capita income Signup and view all the answers

What is one of the main factors that can contribute to an individual experiencing poverty?

Lack of access to healthcare Signup and view all the answers

How is poverty typically assessed?

By purchasing power or per capita expenditures Signup and view all the answers

What does poverty affect besides the ability to purchase goods?

Access to quality education Signup and view all the answers

What is a key indicator of vulnerability associated with poverty?

Poor living conditions including inadequate housing and sanitation Signup and view all the answers

Why is poverty considered a multi-faceted phenomenon?

As it affects not only the ability to purchase goods, but also vulnerability towards various pressures Signup and view all the answers

What is the significance of the International Poverty Line set by the World Bank?

To measure poverty based on a consistent threshold across different countries Signup and view all the answers

Why is it important to periodically update the global poverty line according to the text?

To reflect changes in price levels across the world and to track global extreme poverty Signup and view all the answers

What is the primary purpose of a country's national poverty line according to the text?

To underpin policy dialogue or target programs to reach the poorest within the country Signup and view all the answers

How does the global extreme poverty rate change after the adoption of the new PPP and poverty line according to the text?

The global extreme poverty rate may not be dramatically different, but some regional and country rates may fluctuate considerably Signup and view all the answers

What is the main indicator of poverty and vulnerability according to the text?

Purchasing power Signup and view all the answers

Study Notes

What is Poverty?

Poverty is a multifaceted phenomenon that affects an individual's overall well-being beyond just their ability to purchase goods.

Measuring Poverty

Poverty is typically measured by the World Bank's International Poverty Line (IPL), which is the main indicator of poverty and vulnerability.
The IPL was updated to $2.15 per day in September 2022.
The goal of the IPL is to provide a global benchmark for extreme poverty.

Poverty's Impact

Poverty affects not only the ability to purchase goods but also education, health, and overall well-being.
One key indicator of vulnerability associated with poverty is a lack of access to healthcare and education.

Poverty's Origins

Poverty can arise from various factors, including low income, unemployment, and lack of access to education and healthcare.

Poverty Lines

The poverty line varies between countries, with the United States having a higher poverty line than Ethiopia, for example.
A country's national poverty line is used to determine the poverty threshold for its citizens.
The total family income divided by the family size helps determine the poverty threshold.

Assessing Poverty

Poverty is typically assessed by considering an individual's income, education, health, and access to basic services.

Poverty as a Multifaceted Phenomenon

Poverty is considered a multifaceted phenomenon because it affects various aspects of an individual's life, including education, health, and overall well-being.

Importance of Updating the Poverty Line

It is important to periodically update the global poverty line to reflect changes in the cost of living and to ensure that the poverty threshold remains relevant.

Impact of the New Poverty Line

The global extreme poverty rate changes after the adoption of the new PPP and poverty line.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

This quiz covers the key concepts discussed in Lecture #5 on Poverty and Inequality in the field of Economic Development, presented by Professor Cherrie Nuez. It also includes a disclaimer regarding the educational use of the presentation materials.