3.6.1 Poverty and inequality

What is absolute poverty

living below subsistence unable to meet basic needs

What are basic needs in absolute poverty

food clean water sanitation health shelter education

How does the World Bank measure absolute poverty

living on less than $1.25 per day

What is relative poverty

poverty measured compared to average income

How is relative poverty measured in the UK

below 60% of median income

How is relative poverty measured in the US

basket of goods maintaining average living standards

What does relative poverty indicate

income inequality

What is the Human Poverty Index

measure of deprivation not just income

What does HPI-1 measure

poverty in developing countries

What does longevity measure in HPI-1

probability of surviving to age 40

What does education measure in HPI-1

adult literacy rate

How are basic needs measured in HPI-1

underweight children lack of clean water

What does HPI-2 measure

poverty in developed countries

What longevity measure is used in HPI-2

probability of not surviving to age 60

What income measure is used in HPI-2

living below 50% of median income

What is the Lorenz curve

graphical representation of income distribution

What does the line of equality show

perfect income equality

What does the Lorenz curve show

actual income distribution

What does greater curve bowing indicate

greater inequality

What is the Gini coefficient

numerical measure of inequality

What does a Gini value of 0 mean

perfect equality

What does a Gini value of 1 mean

perfect inequality