Wealth Inequality and Poverty Issues
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Wealth Inequality and Poverty Issues

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Questions and Answers

Which billionaire ranks highest in net worth according to the 2023 data?

  • Elon Musk (correct)
  • Bernard Arnault & family
  • Jeff Bezos
  • Larry Ellison

    • The Gini coefficient is a measure used to assess wealth equality in a population.

    True

    Define poverty in the context of global economic inequality.

    Poverty refers to the condition where individuals lack sufficient financial resources to meet basic needs such as food, clothing, and shelter.

    Economic __________ is often driven by factors such as wage disparities, lack of education, and unequal access to opportunities.

    <p>inequality</p> Signup and view all the answers

    Match the following causes of inequality with their descriptions:

    <p>Wage Disparities = Differences in pay for similar work Lack of Education = Limited access to educational resources Monopolies = Dominance of a few firms in a market Globalization = Increased interconnectedness of economies</p> Signup and view all the answers

    What does the Kuznets curve suggest about the relationship between income inequality and economic development?

    <p>Income inequality first increases and then decreases as economies mature</p> Signup and view all the answers

    The share of the world population living in absolute poverty has consistently increased since 1820.

    <p>False</p> Signup and view all the answers

    What is the international poverty line (IPV) set by the United Nations in 2015 for extreme poverty?

    <p>$1.90 per day</p> Signup and view all the answers

    The transfer of labor from agriculture to ______ is identified as a key factor contributing to income inequality during the early stages of economic development.

    <p>industry</p> Signup and view all the answers

    Which year was associated with the lowest Gini coefficient, indicating the least income inequality among selected countries from the data?

    <p>2000 - Sweden</p> Signup and view all the answers

    Match the following countries with their reported Gini coefficients in the year 2000:

    <p>South Africa = 0.593 United States = 0.391 Sweden = 0.273 Germany = 0.303</p> Signup and view all the answers

    In 1876, Peru had a higher reported Gini coefficient than Brazil.

    <p>False</p> Signup and view all the answers

    What percentage of the world population lived on less than $10 a day, according to the poverty statistics?

    <p>60%</p> Signup and view all the answers

    What does a Gini coefficient of 0 indicate?

    <p>Perfect equality</p> Signup and view all the answers

    Inter-national inequality refers to the distribution of wealth within a single nation.

    <p>False</p> Signup and view all the answers

    What social problems are linked to inequality?

    <p>Life expectancy, poverty, education, access to resources</p> Signup and view all the answers

    The ______ coefficient helps to assess income inequality among a population.

    <p>Gini</p> Signup and view all the answers

    The term 'inequality extraction ratio' refers to what?

    <p>Measured Gini as a percentage of maximum Gini</p> Signup and view all the answers

    Social stratification does not have an impact on wealth distribution.

    <p>False</p> Signup and view all the answers

    Name one factor that contributes to income inequality.

    <p>Social status, class, gender, ethnicity</p> Signup and view all the answers

    Global inequality is the combination of both intra-national and ______ inequality.

    <p>inter-national</p> Signup and view all the answers

    Match the Gini coefficients with their respective maximum feasible inequality:

    <p>Roman Empire = 39.4 Byzantium 1000 = 41.1 England &amp; Wales 1290 = 36.7 Holland 1732 = 61.1</p> Signup and view all the answers

    Which model is used to illustrate the distribution of income inequality graphically?

    <p>Lorenz curve</p> Signup and view all the answers

    Study Notes

    Inequality Today

    • Top ten in the list of wealthiest people are mostly in the United States.
    • Elon Musk surpasses Bernard Arnault's net worth to become the top 1 in 2023.

    Inequality and Poverty

    • Inequality involves the unequal distribution of wealth and income within a society.
    • Poverty is the state of being poor, characterized by limited income, access to essential resources and opportunities.
    • The International Poverty Line (IPV) is set at $1.90 per day (measured in purchasing power parity).
    • Around 10% of the world's population lives below the IPV.
    • Extreme poverty is significantly decreasing, especially since 1970.
    • The IPV is considered extremely low.

    Measuring Inequality

    • Gini-coefficient measures inequality distribution of wealth from 0 to 1, where 0 indicates perfect equality and 1 perfect inequality.
    • Gini index is calculated by multiplying the Gini-coefficient by 100.
    • Lorenz curve depicts income distribution, showing the relationship between the cumulative percentage of population and their corresponding cumulative percentage of income.
    • The maximum "Gini" is the theoretical upper boundary of inequality, based on individual subsistence levels that can be sustained by a society.
    • The "inequality extraction ratio" compares measured Gini to the Maximum Gini.

    Inequality and Industrialization

    • Kuznets curve suggests an inverted U-shape relationship between per capita income and inequality during the early stages of industrialization.
    • Kuznets emphasized the role of labor shifts from agriculture to industry in driving inequality.
    • Global intra-national inequality has been rising since the 1980s.
    • The share of the world population living in absolute poverty has been declining over time.

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    Description

    Explore the dynamics of wealth inequality and poverty in today's world. This quiz delves into the trends of wealth distribution, the metrics used to measure inequality, and the impact of poverty on society. Understand key concepts like the Gini coefficient and the International Poverty Line.

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