Equality vs Equity
Economics of Inequality and Poverty
AO2
Syllabus requirement
Distinguishes between equal treatment (equality) and fairness (equity).
Assessment objectives
AO2 Application and Analysis
Summary
This topic contrasts equality and equity in the distribution of income and wealth. Equity accepts some income differences to create economic incentives, while equality aims for an equal distribution of earnings so no one is paid differently. Understanding the distinction helps explain policy choices about fairness and incentives in an economy.