Topic 3.4: Economics of Inequality and Poverty Questions

A text notes that relative poverty in Belmare has risen to 18 % of households. Define the term relative poverty.

Define the term absolute poverty.

Table 4 shows Tessaly's Gini coefficient. Using Table 4, identify whether income inequality in Tessaly has increased OR decreased OR was constant between 2012 and 2022.

The Gini coefficient is a measure of:

Relative poverty in Halden has risen even though average incomes grew. Define the term **relative poverty**.

Absolute poverty in Orlan's rural areas has halved since 2010. Define the term **absolute poverty**.

Transfer payments are a tool for reducing inequality because they:

Using the data in the table, construct a fully labelled Lorenz curve for Country Z.

The Lorenz curve is used to:

In Country W the area between the line of equality and the Lorenz curve is 0.21, and the total area beneath the line of equality is 0.50. Calculate the Gini coefficient, and state whether inequality is greater or smaller than in Country V, whose Gini coefficient is 0.38.

Progressive taxation helps reduce income inequality because:

Minimum wage legislation aims to reduce poverty by:

One household in six in Tessaly lives in **relative poverty**. Define the term **relative poverty**.

Table 4 shows Halden's Gini coefficient. Using Table 4, identify whether income inequality in Halden has increased OR decreased OR was constant between 2015 and 2025.

Define the term Gini coefficient.

Table 2 notes that Corvane's Gini coefficient was 0.41 in 2024. Define the term **Gini coefficient**.

Table 4 shows Belmare's Gini coefficient. Using Table 4, identify whether income inequality in Belmare has increased OR decreased OR was constant between 2014 and 2024.

A text says that a fifth of Halden’s rural population lives in absolute poverty. Define the term absolute poverty.

Define the term relative poverty.

Kessland's income tax rises from 10% on the first €20,000 to 40% above €50,000. Define the term **progressive tax**.