Poverty and Income distribution

• Economie

Chapter 13: FACING ECONOMIC CHALLENGES

Section 2: Poverty and Income Distribution

Objective of the lesson

1. explain the method economists measure poverty

2. analyze the causes of poverty

3. discuss the method by which economists measure income inequality

​Poverty is the condition where a person’s income and resources

do not allow him or her to achieve a minimum standard of living.

Poverty threshold is the official minimum income needed for

the basic necessities of life in the United States.​​

The poverty rate is the percentage of people living in households that have incomes below the poverty threshold.

ANALYZE THE GRAPH

ANALYZE THE GRAPH

Why is the poverty rate based on the entire population, while the unemployment rate
is based on the civilian work force?

Causes of poverty

Four major factors have the strongest influence on who lives in poverty in the UnitedStates: education, discrimination, demography, and changes in the labor force.

What are the factors affecting poverty?

1. Unemployment
2. Growth
3. Economic development
4. Education,Discrimination,Demographic Trends ,Changes in the Labor Force

This disparity is reflected in the country’s income distribution, the way income is divided among people in a nation.

 income inequality, an unequal distribution of

income. Unless everyone earns the same amount, there will always be a difference 

between the incomes of the wealthiest citizens and those of the poorest.

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How is income inequality measured?

Why is income inequality of interest to
economists and policymakers?

Evaluation

 Why is it difficult to determine a universal poverty threshold?

 What groups are especially hard hit by poverty?

 What groups are especially hard hit by poverty

What are important points of this lesson?