Economic Inequality
Economics of Inequality and Poverty
AO2
Syllabus requirement
Covers income vs wealth inequality and the nature of distribution disparities.
Assessment objectives
AO2 Application and Analysis
Summary
This topic explains economic inequality as unequal distribution of income and/or wealth and shows how it is measured and manifested between and within countries. It distinguishes income distribution from wealth distribution, explains why wealth is harder to measure than income, and lists economic, natural, environmental, physical, social and political factors that cause differences in national wealth. Understanding these distinctions matters because income and wealth gaps affect living standards, future income streams and the scope for poverty-reducing policy.