4.2.3 Policies to reduce poverty and inequality

• What does poverty refer to?

  Lack of basic necessities
• Poverty can be categorized into absolute and relative
• What is examined when studying the causes of poverty and inequality?

  Limiting factors to resources
• Progressive taxation policies aim to redistribute income
• Welfare programs and social safety nets are designed to support individuals in need.
• What are education and healthcare policies aimed at improving?

  Equal access to services
• Job creation and labor market reforms are designed to increase employment
• What does land redistribution and property rights ensure for individuals?

  Access to assets
• Foreign aid and development assistance help address global poverty
• What do policies to promote gender equality aim to combat?

  Discrimination
• Evaluating the effectiveness of policies helps identify their limitations
• What are the two types of poverty mentioned in the material?

  Absolute and relative poverty
• Poverty refers to the state of lacking basic necessities to maintain a minimal standard of living
• Absolute poverty means individuals lack basic necessities like food and shelter.
• What is the condition where individuals have significantly lower living standards compared to others in their society called?

  Relative poverty
• The Gini coefficient measures income distribution on a scale from 0 (perfect equality) to 1 (perfect inequality
• What does the Lorenz curve illustrate about income distribution?

  Cumulative income percentages
• What is the key focus of poverty as opposed to inequality?

  Meeting basic needs
• The two main types of poverty are absolute poverty and relative
• What determines the minimum resources needed for survival in absolute poverty?

  Fixed poverty line
• Relative poverty excludes individuals from social and economic activities.
• What are the three categories of factors that cause poverty and inequality?

  Individual, societal, global
• Lack of education and skills prevents individuals from securing higher-paying jobs
• Discrimination reduces access to opportunities based on factors like race or gender.
• What is one societal factor that reduces income and access to economic resources?

  Unemployment
• What does a heavy debt burden constrain government spending on?

  Social welfare programs
• Absolute poverty is defined as the lack of basic necessities
• Absolute poverty is measured using a fixed poverty line
• The impact of absolute poverty includes malnutrition and homelessness
• Lack of education and skills is an individual factor contributing to poverty
• Unemployment is a societal factor that reduces income
• Regressive taxation disproportionately burdens low-income earners
• Match the global factor with its effect:

  Trade policies ↔️ Impact local industries

  Debt burden ↔️ Constraints government spending

  Economic crises ↔️ Increase unemployment
• Progressive taxation increases tax rates as income rises
• Regressive taxation is a tax system where tax rates decrease with income
• Proportional taxation maintains a constant tax rate
• Progressive taxation ensures higher earners contribute more to society
• Complexity is a drawback of progressive taxation
• Welfare programs are designed to protect vulnerable individuals and reduce poverty
• Match the type of welfare program with its example:

  Cash assistance ↔️ Unemployment benefits

  In-kind benefits ↔️ Food stamps

  Universal Basic Income ↔️ Alaska's Permanent Fund