Can you please explain the basics on poor housing and inequality of opportunity for economics????
I'll be as brief as I can Laura! Firstly, I need to know what you mean by poor housing. Does it mean: 1. Poor quality housing 2. Housing with residents that come from low income? Since it's an economics question, I'm going to assume the second 😊 Low income earners have a higher marginal propensity to consume (MPS). By the way, use that phrasing in your exam, they love it! What it means is simple. Poorer people spend more of their money. As a result, they don't have much left after they pay for rent and bills. Wealthier families, however, have a lot of disposable income left. In the long run, disposable income for rich families = travel, private schools and as a result, the best opportunities. Hope that gives you some guidance!
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