Chapter 11, Section 3.  Another way to examine the economic well being of a nation is to measure the number of people who are living in poverty.

Slides:



Advertisements
Similar presentations
Unemployment What are the different types of unemployment?
Advertisements

Chapter 16 Economic Inequality
Poverty and Economic Inequality
Economic Challenges CHAPTER 11 SECTION 1: Unemployment
Regarding the income distribution in the United States, we have: 0 of Too much inequality 2. Just the right amount of inequality 3. Not enough inequality.
Distribution of Income and Wealth
Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Chapter 17 The Distribution of Income.
Chapter Fourteen Taxes, Transfers, and Income Distribution.
1 Chapter 12 Income Distribution, Poverty, and Discrimination Key Concepts Summary Practice Quiz Internet Exercises ©2000 South-Western College Publishing.
Copyright McGraw-Hill/Irwin, 2005 Facts About Income Inequality The Lorenz Curve Causes of Income Inequality Trends in Income Inequality Equality.
Chapter 17 The Distribution of Income McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
1 Chapter 12 Income Distribution, Poverty, and Discrimination Key Concepts Summary Practice Quiz Internet Exercises ©2002 South-Western College Publishing.
Chapter 20 Income Inequality, Poverty, and Discrimination
1 Chapter 12 Income Distribution, Poverty, and Discrimination Key Concepts Summary Practice Quiz Internet Exercises ©2002 South-Western College Publishing.
Chapter 13SectionMain Menu Unemployment What are the different types of unemployment? How are unemployment rates determined? What is full employment?
Types of Unemployment Frictional Unemployment
New Labor Trends Over the past 15 years Labor has significantly changed Globally: Globalization: “free trade” with other countries Collapse of Soviet Union.
New Labor Trends Over the past 15 years Labor has significantly changed Globally: Globalization: “free trade” with other countries Collapse of Soviet Union.
The Lorenz Curve Warm Up: What are three jobs that get high paying salaries? What are three jobs that get low paying salaries/wages?
Government and Households Chapter 9 What makes poor ‘poor’? What should government do?
Copyright 2008 The McGraw-Hill Companies 20-1 Facts About Income Inequality Causes of Income Inequality Equality Versus Efficiency The Economics of Poverty.
Copyright McGraw-Hill/Irwin, 2002 Facts About Income Inequality The Lorenz Curve Causes of Income Inequality Trends in Income Inequality Equality.
Chapter 3 section 4 Providing a Safety Net Income and Poverty In a Market economy, income depends primarily on earnings, which depend on the value of each.
 Poverty = when a person’s income and resources to not allow him/her to achieve a minimum standard of living  Minimum standard varies from country to.
Chapter 10. Lorenz Curve and Gini Coefficient Measure distribution of thing your interested in. E.g.   Share of largest firms in an oligopolistic industry,
SIGNS OF THE ECONOMIC TIMES LEQ: HOW HAS THE ECONOMIC TRENDS FROM 1980 TO PRESENT CHANGED IN THE UNITED STATES? Key Terms: Inflation Unemployment Gross.
Poverty and the Distribution of Income
Types of Unemployment Frictional Unemployment
Chapter 13SectionMain Menu Unemployment What are the different types of unemployment? How are unemployment rates determined? What is full employment?
Chapter 8: Distribution Overview Income Distribution & Wages and Salaries Income Inequality Interest Income, Savings, Rental Income & profit Circular.
Chapter 6: Poverty and Discrimination. Poverty Kind: Absolute vs. Relative Absolute: inability to satisfy basic human needs (food, shelter, clothing,
According to the Census Bureau, individuals, families, or households are living in poverty if their total incomes fall below the designated income levels.
Chapter 18Copyright ©2009 by South-Western, a division of Cengage Learning. All rights reserved 1 ECON Designed by Amy McGuire, B-books, Ltd. 18 CHAPTER.
McGraw-Hill/Irwin Copyright  2008 by The McGraw-Hill Companies, Inc. All rights reserved. Who Gets What? The Distribution of Income Who Gets What? The.
 Goal of Equity in Income distribution: is to have a more equitable (fairer) distribution of income. That means productive income is divided among the.
1 Labor Markets and Income Distribution ©2006 South-Western College Publishing.
Income Inequality, Poverty, and Discrimination Chapter 20 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
Starter Is a lower level of education a cause of poverty or a result of poverty?
No matter how much money you have, choose to not be poor.
Chapter 13: Economic Challenges Section 3. Copyright © Pearson Education, Inc.Slide 2Chapter 13, Section 3 Objectives 1.Define who is poor, according.
1 Chapter 14 Income Distribution © 2003 South-Western College Publishing.
Presentation Pro © 2001 by Prentice Hall, Inc. Economics: Principles in Action C H A P T E R 13 Economic Challenges.
Today’s Schedule – 10/30 Ch. 11 & 12.2 Quiz Finish Daily Show Clip
Chapter 21 Income Inequality, Poverty, and Discrimination Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution.
1 Chapter 12 Tutorial Income Distribution, Poverty, and Discrimination ©2000 South-Western College Publishing.
Chapter 21 Income Inequality, Poverty, and Discrimination Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution.
Measure distribution of thing your interested in. E.g.  Share of largest firms in an oligopolistic industry, e.g share of top eight, sixteen etc  distribution.
Economic Challenges Chapter 13 Section 3 Poverty.
McGraw-Hill/Irwin Copyright  2008 by The McGraw-Hill Companies, Inc. All rights reserved. Who Gets What? The Distribution of Income Who Gets What? The.
McGraw-Hill/Irwin Chapter 11: Income Inequality and Poverty Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
Absolute and relative poverty
21 C H A P T E R INCOME INEQUALITY AND POVERTY.
Chapter 8: Distribution.
32 Income Inequality and Poverty.
Unemployment What are the different types of unemployment?
Unemployment What are the different types of unemployment?
Global Labor Trends & Inequality
Unemployment What are the different types of unemployment?
Economics: Principles in Action
Unemployment What are the different types of unemployment?
Facing Economic Challenges
Unemployment What are the different types of unemployment?
Redistribution of income and wealth
Unemployment What are the different types of unemployment?
Chapter 13: Economic Challenges Section 3
Unemployment What are the different types of unemployment?
Unemployment What are the different types of unemployment?
Facing Economic Challenges
Unemployment What are the different types of unemployment?
Chapter 12 Income Distribution, Poverty, and Discrimination
Presentation transcript:

Chapter 11, Section 3

 Another way to examine the economic well being of a nation is to measure the number of people who are living in poverty.

 Poverty level  Lowest income, as determined by the government, that a family or household of a certain size needs to maintain a basic standard of living

 The percentage of individuals or families in the total population that are living in poverty

 Different economic and social backgrounds  Different Skills  Different Talents  Different neighborhoods  Different schools  Different economic struggles  Different social issues

 An illustration of the amount that a nation’s distribution of income varies from a perfectly proportional distribution of income.

 The ore an actual Lorenz Curve dips below this 45-degree line of absolute equality, the greater the amount of income inequality

 Another statistical measure of inequality  Ranges from 0.0 to 1.0  0.0 = each family or household receives an equal share of the total income  1.0 = one family or household receives all of the income.  Area above the LC divided by area below the LC

 The income is based on gross incomes before deductions.  Personal income tax  Social security  Medicare  Health insurance  Union dues

 The income does not include the following:  Food stamps  Health benefits  Low cost housing

 Are the rich getting richer and the poor getting poorer?  Growing income gap due to Changes in Households Changes in the labor market Rapid changes in technology The growth of a global economy

 Married couples with their children make up a large percentage of the wealthier households  Well paid men often marry well paid women boosting income at the top of the income distribution

 Divorce Rates  More out-of-wedlock births  Increasing number of people who live alone

 Corporate Downsizing  Decline in the real value of minimum wage  Inflation  Increased use of temporary workers  Union membership has decreased

 Drop in demand for lower skilled workers  Increase jobs for the highly skilled, trained, and educated  Income reflects education  The need for education is more important than ever!

 Relocation of companies to other countries where laborers will work for less pay  US low skilled workers end up at the bottom of the income distribution