Practise defining and applying absolute poverty, interpreting Lorenz curves and Gini coefficients, and linking transfer payments or education to inequality changes.
In 2022 Madagascar had an absolute poverty rate of 71\%.
Which one of the following statements about absolute poverty is true?
Absolute poverty is the inability of individuals or groups to meet their basic needs
Absolute poverty is based on value judgements and is subject to changes over time
Absolute poverty measures the percentage of people within a country earning less than 60\% of median income
Absolute poverty measures the percentage of people earning more than $ 2.15 a day at 2017 PPP values
The chart shows the Dominican Republic's Gini coefficient, expressed as a percentage, between 2018 and 2021.
Which one of the following can be deduced from this chart?
Between 2018 and 2021 the Lorenz curve shifted closer to the line of perfect equality
Between 2018 and 2019 the distribution of income became more unequal
Between 2019 and 2020 there was perfect income inequality
Between 2020 and 2021 income inequality increased by approximately 1.1\%
Armenia's Gini coefficient increased from 0.28 in 2009 to 0.34 in 2017.
Which one of the following is most likely to reduce Armenia's income inequality?
A reduction in the national minimum wage
An improvement in education and training
A decrease in progressive tax rates
An increase in regressive tax rates