Economic Growth and Development (Grade 11 NSC Matric Economics): Flashcards
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Definition of wealth in economics
Definition of wealth in economics
Abundance of valuable material possessions or resources
Primary method of wealth creation
Primary method of wealth creation
Savings
Income formula: meaning
Income formula: meaning
Income = Consumption + Savings
What the Lorenz curve shows
What the Lorenz curve shows
How wealth is spread across a country's population
What the line of equality represents
What the line of equality represents
Perfect equality where everyone has the same wealth
Gini coefficient range
Gini coefficient range
0 to 1 (or 0% to 100%)
Gini coefficient of 0 means
Gini coefficient of 0 means
Complete equality (everyone has same wealth)
Gini coefficient of 1 means
Gini coefficient of 1 means
Complete inequality (one person has everything)
Inheritance as cause of wealth inequality
Inheritance as cause of wealth inequality
Some receive money/property from family, giving them a head start
Progressive taxation as redistribution method
Progressive taxation as redistribution method
Wealthy pay higher tax rates to fund social programmes