Economic growth and inequality review sheet

Review of terms for unit 3.3-3.4: Economic growth and inequality

I have included this page, which contains a PDF handout as a simple revision exercise.  I find that many IB students get a degree of comfort from these short summary handouts.

1. Complete the following sentence by flling in the missing words:

Economic growth represents an increase in the   of an economy or an increase in real GDP or     .

  capacity  real  GDP  GNI  productive  income 

 

 

2. Complete the following sentence by filling in the missing words:

Development / living standards represents improvements to the quality of life in a nation, measured by per capita,     and life   .

rates  expectancy  literacy  standards  GDP  GNI 

 

 

3. Complete the following sentence by filling in the missing words:

 unemployment is a long term form of unemployment caused by fundamental changes in an economy.

Structural  Seasonal  Long term  Frictional 

 

 

4. Complete the following sentence by filling in the missing words:

GDP is calculated by an index of economic growth minus the environmental consequences caused by that growth.

Sustainable  Green  Net 

 

 

5. Complete the following sentence by filling in the missing words:

equals the available assets that a person owns which may include property, stocks and shares, personal savings or easily tradable valuable items such as gold or jewellery.

 Income  Wealth 

 

 

6. Complete the following sentence by filling in the missing words:

Income equals the amount that an individual receives from (if they have a job) from on land or property,  on their savings in the bank or  on stocks and shares that they may earn.  These monies when added together collectively make up the individual’s income or gross .

  rent  wages  shares  profit  ouput  interest  income 

 

 

7. Complete the following sentence by filling in the missing words:

Net income represents a person's gross income minus paid.

taxes  interest 

 

 

8. Complete the following sentence by filling in the missing words:

can be described as fairness in terms of providing each member of society with the same opportunities to be successful - access to healthcare, education and training e.t.c.

Equality  Equity 

 

 

9. Complete the following sentence by filling in the missing words:

 recognises that each person has different circumstances and allocates the exact resources and opportunities needed to reach an equal outcome. 

Equality  Equity 

 

 

10. Complete the following sentence by filling in the missing words:

  is the condition in which people lack the minimum amount of income needed in order to maintain the average standard of living in the society in which they live.  A person is described as relatively poor if they ear less than    % of the mean wage in the country.

  Absolute  Relative  50  20  poverty 

 

 

11. Complete the following sentence by filling in the missing words:

The      was developed by Max Lorenz in 1905 and illustrates the level of income inequality within an economy.

curve  laffer  lorenz  gini  coefficient 

 

 

12. Complete the following sentence by filling in the missing words:

The  coefficient is a formulae developed by Corrado Gini in 1912, it measures the level of income   within a society, but in numerical form.  Nations given a Gini coefficient of between 0 and 1, with  being the most unequal and representing a nation where ever citizen earned the same.

 1  0  100  gini  inequality  -1 

 

 

13. Complete the following sentence by filling in the missing words:

taxation includes taxes where the burden paid increases when a households income rises.  It means that the   wage a person earns, the higher their average rate of tax is.

lower  higher  Proportional  Progressive  Regressive  income 

 

 

14. Complete the following sentence by filling in the missing words:

taxation are taxes where the burden paid falls when a households income rises.  Regressive taxes take a larger percentage of individuals on low   than individuals on higher incomes.

 lower  higher  Proportional  Progressive  Regressive  incomes

 

 

15. Complete the following sentence by filling in the missing words:

taxes are taxes where the burden falls equally on both low and high income households.    taxes will apply the same % tax burden, regardless of the level of income earned.

lower  higher  Proportional  Progressive  Regressive  income 

 

 

16.Complete the following sentence by filling in the missing words:

  are payments made by governments in the form of welfare benefits and   subsidies for which money, goods, or services are received.

  public  Private  welfare  payments  no  Transfer 

 

 

Total Score:

The review sheet is available as a PDF file at:  Review sheet

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