Poverty and Inequality

MEASURES OF CENTRAL TENDENCY

Important concepts:

        First aspect: The order of numbers must be ascending.

The mean: It’s the result of adding all the results and divides them in the total quantity of numbers.

The mode: It is the value that has the higher absolute frequency.

The median: It is the value that takes place in the middle of the data distribution, which is ordered in an ascending way.

Distribution’s skew: Depending on the mean, median and mode the distribution’s skew could be positive, negative or normal.

ABSOLUTE POVERTY / WEALTHY

Important concepts:

        Wealthy people: They are people that have fortunes, they are millionaires.

        Modest incomes: They are people that receive good wages and are people of middle-high class.

        Poor: They are people who receive very low incomes; generally they are homeless people or people that work in very menial jobs.

        Absolute poverty: They are people that don’t receive any income, generally they are malnourished and don’t have the opportunity to go to school, they don’y have access to healthy or basic public services.

        MDGs: Millennium development goals, it is a set of goals to avoid absolute poverty around the world.

FACTOR ACCUMULATION

Important concepts:

        Solow model: It is a model of capital accumulation that allows understanding and seeing the situation of national production of goods and services.

        Steady state: It happened when the capital per worker does not change over the time.

        Capital accumulation: It is all the goods, infrastructure, machines and others that increase the capital.

        Human capital: It is a set of things that are inverted un people as the education, training and the ability to produce new knowledge

        Technical progress or technological change: It is as the new inventions of human being that creates tools to improve productive processes and work efficiently.

ENDOGENOUS GROWTH THEORY

Important concepts:

It shows that the economic growth is due to endogenous results and not for external forces.

The investment in human capital, innovation and knowledge help to economic growth.