SOC002 - Exam 1 (fix)

What are the benefits of calculating inequality?

It helps identify disproportionality in resource distribution, informs policy decisions, and highlights areas requiring intervention.

What are the causes of inequality?

Disproportionate access to resources, systemic issues, economic disparities, and historical factors.

What are concepts related to inequality?

Standard deviation, Gini index, Lorenz curve, absolute gaps, and absolute shares.

What are the challenges in making international comparisons of inequality?

Differences in economic systems, data availability, currency conversions, and cultural contexts.

What are the patterns in world health maps for undernourishment and COVID vaccine distribution?

Global South experiences higher rates of undernourishment, while COVID vaccine distribution highlights disparities favoring wealthier nations.

What is the international poverty line?

$2.15 per day in international dollars.

What are “international dollars”?

A hypothetical unit of currency that accounts for purchasing power parity (PPP) to compare income levels across countries.

How do global poverty rates differ between the Global North and Global South?

Global North poverty rates are below 1%, whereas the Global South sees rates above 65% in countries like Malawi and Mozambique.

What is the “triple whammy” faced by poor households?

Low wages, irregular pay, and lack of financial services.

What coping strategies do poor households use?

Children becoming economically active, informal borrowing, and participating in savings clubs.

What are the types of savings clubs?

Saving Up Club: Money pooled and untouched for a set period. Rotating Savings Club: Members take turns accessing the pooled funds. Accumulating Savings Club: Funds grow collectively over time.

Saving Up Club

Money pooled and untouched for a set period. A method of saving where contributions are collected from members and not accessed until the end of the agreed period.

Rotating Savings Club

Members take turns accessing the pooled funds. A type of savings club where each member receives the total pooled amount in rotation, allowing for periodic access to funds.

Accumulating Savings Club

Funds grow collectively over time. Members contribute regularly, and the total amount increases through interest or additional contributions.

What is the Gini index?

A measure of income inequality ranging from 0 (perfect equality) to 1 (perfect inequality), calculated using the Lorenz curve.

What is the difference between absolute gaps and relative shares?

Absolute gaps measure numerical differences. Relative shares compare proportions relative to total values.

What is GDP PC PPP?

Gross Domestic Product per capita adjusted for purchasing power parity, which reflects the relative value of goods and services.

What are the trends in between-country and within-country inequality?

Between-country inequality has decreased slightly, but within-country inequality has increased in many nations.

What are the relationships between wealth, health, and happiness?

Greater wealth generally improves health and happiness, but diminishing returns occur beyond a certain income level.

What is the purpose of the Lorenz curve?

To visually represent income or wealth distribution, showing the degree of inequality within a population.

How does the Gini index relate to the Lorenz curve?

It measures the area between the Lorenz curve and the line of equality, quantifying inequality.

What is an example of absolute gaps in inequality?

The difference in income between two groups, such as $10,000 vs. $50,000.

What is an example of relative shares in inequality?

A comparison of income proportions, such as one group earning 10% of total income while another earns 50%.

How can wealth influence health outcomes?

Wealth provides access to better healthcare, nutrition, and living conditions, leading to improved health outcomes.

What role does happiness play in measuring inequality?

Happiness levels can reflect well-being and social equity beyond income metrics.

What are some regional patterns of inequality?

Africa has higher poverty rates, while Europe shows relatively lower inequality levels.

What is the significance of cross-national differences in global poverty rates?

It highlights disparities in economic development and the effectiveness of poverty alleviation strategies.

What is the importance of understanding the “triple whammy” for poverty studies?

It explains why poor households struggle with financial stability and resilience.

What is the role of savings clubs in poverty management?

They enable collective financial security, promote saving habits, and provide access to pooled resources.

What are the component parts of global income inequality?

Between-country differences, within-country disparities, and wealth distribution.

Why is purchasing power parity (PPP) important in global comparisons?

It accounts for cost-of-living differences, allowing for more accurate income comparisons.

How does skewed income distribution affect regional development?

It creates economic imbalances, limiting growth opportunities for poorer regions.

What are the challenges of using GDP PC PPP as a development indicator?

It doesn't account for income distribution or quality of life.

What historical trends influence modern inequality?

Colonial exploitation, industrialization, and globalization have shaped present economic disparities.

How has between-country inequality evolved over time?

It has decreased with globalization but remains significant due to persistent wealth gaps.

Why is measuring within-country inequality increasingly important?

Rising disparities within countries can lead to social unrest and hinder economic progress.