EXAM IS COMING!!!!! This is everything you need for this topic! I got A* studying this, soooooo it will probably reduce your time and effort to find a tutor and it will be more beneficial than your class notes!!! Check out for other summaries in my uploads.
Full revision notes for Edexcel Economics A Paper 2 Macroeconomics
All for this textbook (60)
Written for
A/AS Level
PEARSON (PEARSON)
Economics A
Unit 4 - A global perspective
All documents for this subject (124)
Seller
Follow
antheachung7720
Content preview
4.2.2 Inequality
a) Distinction between wealth and income inequality
Wealth: Wealth is a stock of asset at a particular point in time e.g. housing, pensions
Income: Income is a flow of money with respect to time e.g. interest, wages
Equity: fairness – everyone got diff 需求 so its abt getting wt ppl want
Equality: everyone treated equally – got exactly the same thing
a) Measurements of income inequality:
the Lorenz curve (diagrammatic analysis)
the Gini coefficient
= A / (A+B)
‘0’ = super equality
‘1’ = super unequal
c) Causes of income and wealth inequality within countries and between countries
Reasons for income inequality:
1. Difference of wealth
2. Human capital (education and skills)
- Income/wages are determine by labor market MRP
- Workers skilled/productive => higher wages (depends on health & education)
- Wages for lawyers OR cleaners
V tech X tech less productive
Increase productivity
3. Discrimination
4. Government tax & benefit policies
- X progressive tax system
- Increase regressive tax
- No proper tax system
- American not give out benefit becoz they think inequality is good
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller antheachung7720. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $13.71. You're not tied to anything after your purchase.
