Distinguish between equity and equality.Explain two ways in which a country might establish its national poverty line.Explain the difference between absolute and relative poverty.Explain two causes of inequalityExplain what would happen to the distribution of income if a country were to decrease the direct tax rates for top income earners, and reduce its indirect tax rate. HL only: Analyze the relationahisp between a country's Gini coefficient and its Lorenz curve. part b. questions (HL only)Using real-world examples, evaluate the consequences of a country adopting a more progressive tax structure.Using real-world examples, evaluate the effectiveness of minimum wages in achieving a more equitable distribution of income. Using real-world examples, discuss the extent to which transfer payments can alleviate povertyUsing real-world examples, evaluate the view that a government's fiscal policy can be both a cause of inequality and a means of reducing inequality. 4-mark questions (HL P2, SL P2 or HL P3)A country increases its indirect tax rate. Using a Lorenz curve diagram, explain how this may impact the country's distribution of income. Citizen A in a country earns $130,000 and pays $12,000 in taxes. Citizen B earns $55,000 and pays $10,000 in taxes. Explain whether the tax structure is progressive or regressive (HL only)

Examination QuestionsPaper 1 part a questions:Distinguish between equity and equality.Explain two ways in which a country might establish its national poverty line.Explain the difference between absolute and relative poverty.Explain two causes of inequalityExplain what would happen to the distribution of income if a country were to decrease the direct tax rates for top income earners, and reduce its indirect tax rate.

Distinguish between equity and equalityExplain the meaning of inequalityExplain how income inequality may be measuredIllustrate how the Lorenz curve shows inequality Explain the relationship between the Lorenz curve and the Gini index.HL: Construct a Lorenz curveExplain the meaning of poverty Explain how poverty is measuredExplain the Multidimensional Poverty IndexDescribe some of the causes of inequality and povertyDiscuss the impact of inequality on economic growth, living standards and social stability.Discuss the role of taxation in reducing poverty, income and wealth inequalities.Evaluate policies available to a government to reduce poverty, income and wealth inequalities.

Fill in the BlanksType your answers in all of the blanks and submit- current answer: <p id="">The graph that is used to depict income inequality, showing the percent of households along the &lt;blank&gt; axis and the percent of income along the &lt;y&gt; axis is known as the &lt;l&gt;curve.&nbsp;</p> <p id="">- br -</p> <p id="">If income were perfectly equally distributed within a country, the value of the Gini ratio for that country would be &nbsp;&lt;z&gt;.&nbsp;</p> <p id="">- br -</p> <p id="">The distribution of wealth tends to be &nbsp;&lt;more&gt; (more/less) unequal than the distribution of income.&nbsp;</p> <p id="">- br -</p> <p id="">The closer a Lorenz curve is to a 45-degree straight line, the more &lt;e&gt; (equal/unequal) the distribution of income.&nbsp;</p> <p id="">- br -</p> <p id="">A Gini coefficient of 0.80 would be considered a highly &lt;e2&gt; (equal/unequal) &nbsp;distribution of income.</p> <p id="">- br -</p>The graph that is used to depict income inequality, showing the percent of households along the blank - Word AnswerWrite your response here... axis and the percent of income along the y - Word AnswerWrite your response here... axis is known as the l - Word AnswerWrite your response here...curve. If income were perfectly equally distributed within a country, the value of the Gini ratio for that country would be  z - Numeric Answer. The distribution of wealth tends to be  more - Word AnswerWrite your response here... (more/less) unequal than the distribution of income. The closer a Lorenz curve is to a 45-degree straight line, the more e - Word AnswerWrite your response here... (equal/unequal) the distribution of income. A Gini coefficient of 0.80 would be considered a highly e2 - Word AnswerWrite your response here... (equal/unequal)  distribution of income.

Discuss two ways that high-income countries could assist low-income countries in breaking the cycle of poverty.

explain poverty