Understanding the Poverty Cycle

A cycle where poverty is passed down from generation to generation due to limited resources, education, and healthcare, leading to poor health and lower productivity.

A lack of sufficient financial resources to meet basic needs like food, shelter, and education.

Families struggling financially often cannot afford quality education for their children.

Essential components: land, labor, and capital used in creating goods and services.

Natural resources (minerals, water, land) used in production.

Human effort (physical and intellectual) used in creating goods and services.

Tools, machinery, buildings, and infrastructure used in production, including invested money.

The increase in an economy's size and productivity over time.

A beneficial side effect of production or consumption that benefits others not directly involved.

A harmful side effect of production or consumption that harms others not directly involved.

An unintended consequence of production or consumption affecting third parties.

Side effect of producing a good or service that impacts others.

Side effect of consuming a good or service that impacts others.

Combining resources to innovate and take risks in business.

A state where individuals lack the basic necessities for survival, such as food, shelter, and healthcare. It is measured by income below the international poverty line.

Poverty defined in comparison to the living standards within a society. Individuals are considered relatively poor if their income is significantly lower than the average.

The level of wealth, comfort, and necessities available to a person or community. Includes aspects like income, healthcare, access to education, and housing.

A measure of a country's progress in three areas: health (life expectancy), education (years of schooling), and standard of living (GNI per capita).

The total value of all goods and services produced within a country's borders during a specific time period.

A theory that compares economic productivity and living standards across countries by considering the cost of living and inflation rates.

Economic growth measures the value of goods and services produced, while economic development focuses on human welfare, including health, education, and income distribution.

Investing in education, healthcare, and infrastructure can help break the cycle by improving productivity, raising income levels, and creating opportunities for economic growth.

Maps that use color variations to visualize geographical data, often used to show income levels, resource access, and population density, highlighting development patterns.

Less economically developed countries (LEDCs) often have disparities due to historical factors like colonialism, resource availability, and infrastructure development.