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Unit 3 Macroeconomic( Economics of inequality and poverty), Unit 3…
Unit 3 Macroeconomic( Economics of inequality and poverty)
capitalist systems
Economic systems in which private individuals or businesses own capital goods, and it is based on the supply of goods and services in a free market.
social mobility
Social mobility refers to the ease at which people may climb or fall in the economic strata of society, based on how society efficiently allocates the value of their labour.
World Happiness Index
Equality
Equality refers to situations where economic outcomes are the same (or similar) for different people or social groups.
Equity
Equity refers to the concept of fairness or evenness and is considered an economic objective.
Economic inequality
Economic inequality refers to how wealth, assets or incomes are distributed differently among individuals and the population as a whole. This is often called the ‘wealth gap’ between the rich and poor.
growth
rising again
Human Development Index
A composite indicator measuring health (through life expectancy), education (through mean and expected years of schooling), and standard of living (through GNI per capita at $PPP).
Lorenz curve
The Lorenz curve plots the cumulative share of the population in either deciles or quintiles on the x-axis against the cumulative share of income earned by those groups, along with a 45° line to represent perfect equality.
Gini coefficient
A measure of distributions of income in an economy used to measure levels of inequality.
Absolute poverty
Absolute poverty refers to people earning below internationally defined levels of income, currently USD 1.90 per day.
relative poverty
Relative poverty refers to a low level of income that is country-specific and relative to the average earnings in that country.
indicators
A variable that measures certain characteristics of a country or its people.
single indicator
composite indicator
A composite indicator is compiled of a number of single indicators that forms an index, which helps to measure multi-dimensional concepts such as poverty.
Human Development Index
Multidimensional Poverty Index
Inequality of opportunity
deterred
segregation
direct taxation
Taxes that are paid directly to governments, such as an income tax.
Progressive taxation
This refers to a system that taxes people higher rates the more they earn. This is not to be confused with just paying more tax; the percentage paid rises too.
Regressive taxation
This is when a higher percentage of tax is paid the less a person earns.
Proportional taxation
This is a fixed rate of tax levied on all individuals. Thus, people pay the same percentage but not the same total amount.
Unit 3 Macroeconomic( Economics of inequality and poverty)
direct taxation
Taxes that are paid directly to governments, such as an income tax.
debate
average tax rate(HL)
The share of income that an individual pays in taxes. Average tax rates are usually much lower than marginal tax rates.
marginal tax rate
This is the tax rate imposed on an individual’s last dollar (or alternative currency) of income.
struggle
Transfer payments
Transfer payments are a type of government expenditure that is not in exchanges for goods and services. Often, transfer payments are used to redistribute income and support the poor.
transfer payments
Old-age pensions
Unemployment benefits
Unemployment benefits