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Ch 17 3.4 Economics of inequality and poverty: complete notes
Neat, exam-ready notebook-style notes for Ch 17 3.4 Economics of inequality and poverty, following the IB Diploma syllabus, SL and HL. This chapter is part of the complete Economics Notes for IB Diploma Students (SL and HL): All 30 Topics.
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Free preview: Ch 17 3.4 Economics of inequality and poverty notes
A quick look at the chapter from our IB Diploma Economics notes. The full chapter notes have the detailed explanations, diagrams and practice questions with answers.
Topics in this chapter
- What you must be able to do
- The Lorenz curve and the Gini coefficient
- Constructing a Lorenz curve from quintile data AO4
- Wealth is more unequally distributed than income
- Measuring poverty
- Difficulties in measuring poverty
- The impact of inequality (AO3)
- Average and marginal tax rates AO3 AO4
- Calculating indirect tax paid and total tax AO4
- Evaluating taxation as a tool to reduce inequality and poverty (AO3)
“I can” checklist: what you must be able to do
- I can explain the relationship between equality and equity, and the meaning of income and wealth inequality.
- I can draw and interpret a Lorenz curve, the Gini coefficient and changes in distribution.
- HL: I can construct a Lorenz curve from quintile data.
- I can distinguish absolute and relative poverty and explain international poverty lines, minimum income standards, the MPI and difficulties of measurement.
- I can explain eight causes of inequality and poverty.
- I can evaluate the impact of inequality on growth, standards of living and social stability.
- I can explain progressive, regressive and proportional taxes, and direct and indirect taxes, and evaluate taxation.
- HL: I can calculate average and marginal tax rates, indirect tax paid and total tax.
- I can evaluate policies: human capital, transfers, targeted spending, universal basic income, anti-discrimination, minimum wages.
What is inside the full chapter notes
- Concept notes with 9 worked examples (every number computed)
- Lorenz diagrams (SL) and Lorenz construction from quintile data (HL); tax-rate diagrams
- Common mistakes and a "How to score" command-term box
- 12 Quick-check questions A-D, explained
- Paper 1 style (a) 10 + (b) 15 with mark scheme
- Paper 2 style data response (36 marks) with mark scheme
- HL Paper 3 style policy question (16 marks) with mark scheme
- Markbands, quick reference and "I can" checklist
What you get in the pack
- All 30 topics of IB Diploma Economics for students taking Standard Level or Higher Level (first assessment 2022): what economics is, demand, supply, market equilibrium, behavioural economics, elasticity, government intervention, externalities, public goods, asymmetric information, market power, equity, measuring economic activity, aggregate demand and supply, macroeconomic objectives, inequality and poverty, monetary policy, fiscal policy, supply-side policies, international trade, trade protection, economic integration, exchange rates, balance of payments, sustainable development, measuring development, growth and development strategies
- Every syllabus statement covered in order, each marked SL or HL, with clear notes, tables and diagrams drawn for these notes
- Every diagram the guide names, drawn and labelled, plus worked examples and model answers that show how to earn the marks
- Quick-check multiple-choice questions with explained answers, plus original Paper 1 (extended response), Paper 2 (data response) and, for HL, Paper 3 (policy) style questions with full mark schemes (no past-paper reprints)
- Common mistakes and a how-to-score command-term guide for every topic
- Quick-reference sheet and an "I can" checklist at the end of every topic
- Colour PDF and a black and white copy of every chapter for printing
- Independent notes for IB Diploma students; not endorsed by or affiliated with the International Baccalaureate Organization (IBO)
All chapters in this pack
- Ch 1 1.1-1.2 What is economics? and How do economists approach the world?
- Ch 2 2.1 Demand
- Ch 3 2.2 Supply
- Ch 4 2.3 Competitive market equilibrium
- Ch 5 2.4 Critique of the maximizing behaviour of consumers and producers
- Ch 6 2.5 Elasticity of demand
- Ch 7 2.6 Elasticity of supply
- Ch 8 2.7 Role of government in microeconomics
- Ch 9 2.8 Market failure: externalities and common pool resources
- Ch 10 2.9 Market failure: public goods
- Ch 11 2.10 Market failure: asymmetric information (HL)
- Ch 12 2.11 Market failure: market power (HL)
- Ch 13 2.12 The market's inability to achieve equity (HL)
- Ch 14 3.1 Measuring economic activity and illustrating its variations
- Ch 15 3.2 Aggregate demand and aggregate supply
- Ch 16 3.3 Macroeconomic objectives
- Ch 17 3.4 Economics of inequality and poverty
- Ch 18 3.5 Demand management: monetary policy
- Ch 19 3.6 Demand management: fiscal policy
- Ch 20 3.7 Supply-side policies
- Ch 21 4.1 Benefits of international trade
- Ch 22 4.2 Types of trade protection
- Ch 23 4.3 Arguments for and against trade control and protection
- Ch 24 4.4 Economic integration
- Ch 25 4.5 Exchange rates
- Ch 26 4.6 Balance of payments
- Ch 27 4.7 Sustainable development
- Ch 28 4.8 Measuring development
- Ch 29 4.9 Barriers to economic growth and/or economic development
- Ch 30 4.10 Economic growth and/or economic development strategies