Inequality Flashcards
What are the two types of inequality?
Income inequality
Wealth inequality
What is income inequality?
Income inequality refers to the unequal distribution of income to households
What is wealth inequality?
Wealth inequality refers to differences in the amount of assets that households own.
What are the two ways to measure ineqaulity?
The two main measures of income inequality are the Lorenz Curve & the Gini coefficient
What is the lorenz curve?
The Lorenz Curve is a visual representation of the inequality that exists between households in an economy
What is the Gini coefficient?
Is a statistical measure of economic inequality in a population.
What causes inequality?
Education, training and skills
Trade unions
Benefit systems
Pension payments
Wage rates
Unemployment legislation
Tax structure
Asset ownership
What are the impact of economic change & development on inequality
Industrialisation results in increased inequality
Government intervention/support decreased inequality
