1.7.3 Government policies to alleviate poverty and to influence the distribution of income and wealth

• Wealth is typically more unequally distributed than income.


  True
• Income distribution refers to how the total income of a country is distributed across its population
• Match the concept with its description:

  Income Distribution ↔️ How income is distributed

  Wealth Distribution ↔️ How assets are distributed
• Absolute poverty is based on a fixed income level, while relative poverty compares living standards in a society.


  True
• What are the main sources of income inequality?

  Wages, education, wealth, discrimination, technological change
• What is the primary goal of social welfare programs?

  Provide essential services and assistance
• Labor market regulations include minimum wage laws to ensure fair compensation.


  True
• The effectiveness of poverty reduction policies depends on economic conditions and implementation.


  True
• Income distribution is how income is shared
• Poverty refers to the lack of sufficient financial resources to meet basic needs.

  True
• Absolute poverty is the inability to afford basic needs for survival
• What are the main sources of income inequality?

  Differences in wages, education, wealth
• Match the source of inequality with its description:

  Globalization ↔️ Increased competition from low-wage countries

  Technological Change ↔️ Automation disproportionately benefits high-skilled workers

  Discrimination ↔️ Biases against certain demographic groups
• Labor market regulations may increase labor costs for employers
• What is the primary purpose of social welfare programs?

  Reduce hardship and improve access to basic needs
• Labor market regulations may increase labor costs for employers.


  True
• Progressive tax systems redistribute wealth to lower-income groups through public services
• How does education and job training improve income inequality in the long term?

  Increases earning potential
• What is a drawback of transfer payments in reducing poverty?

  Creates dependency
• What is the overall impact of education and job training on income inequality?

  Highly effective
• Poverty refers to the state of lacking sufficient financial resources to meet basic needs
• Match the type of poverty with its definition:

  Absolute Poverty ↔️ Lack of essential resources

  Relative Poverty ↔️ Comparison to living standards
• Steps in the process of government policies to alleviate poverty

  1️⃣ Provide social welfare programs

  2️⃣ Implement tax reforms

  3️⃣ Increase educational opportunities

  4️⃣ Promote employment
• Taxation policies use a progressive tax system where higher incomes are taxed at higher rates
• Match the policy type with its benefit:

  Social Welfare Programs ↔️ Improves access to basic needs

  Taxation Policies ↔️ Raises revenue for welfare

  Labor Market Regulations ↔️ Ensures fair wages
• How does wealth distribution compare to income distribution in terms of equality?

  Wealth is more unequally distributed
• Match the concept with its component:

  Income Distribution ↔️ Wages, salaries, profits

  Wealth Distribution ↔️ Property, investments, savings
• What is the key difference between absolute and relative poverty?

  Absolute poverty is survival, relative poverty is standard of living
• Discrimination is one of the causes of poverty.


  True
• Differences in wages contribute to income inequality due to disparities between high-skilled and low-skilled workers
• What is a potential drawback of social welfare programs?

  May create dependency
• Poverty reduction policies require careful planning and evaluation to maximize their benefits.


  True
• A progressive tax system taxes higher incomes at a higher rate
• What is crucial for maximizing the benefits of government policies aimed at poverty reduction?

  Careful planning and evaluation
• Unemployment benefits help individuals cover basic expenses while seeking employment.

  True
• Transfer payments provide immediate financial relief
• Order the overall impact of government policies on income distribution from least to most effective:

  1️⃣ Transfer Payments

  2️⃣ Taxation Policies

  3️⃣ Education & Job Training
• Combining taxation, transfer payments, and education is most effective in reducing poverty.


  True