- Created by: Sophie
- Created on: 08-06-20 11:36
What is the Lorenz curve?
The Lorenz curve measures the distribution of income and weath in a country.
What is the Gini Coefficient?
The Gini coefficient is a commonly-used measure of income inequality that condenses the entire income distribution for a country into a single number between 0 and 1: the higher the number, the greater the degree of income inequality.
What country has the highest Gini coefficient? (As
Currently South Africa has the highest Gini coefficient at 0.63
This is estimated by the World Bank.
Where is the United Kingdom Ranked for Gini coffie
We are ranked at 116 in the world, and 14 in Europe.
What is the UKs Gini coeffient value?
As of 2015 (which on the date of making this is the most recent official report) the UK's Gini coefficient is 0.33.
How do you measure the Gini coffient?
What is the difference between income and wealth?
Income is a flow of money going to factors of production.
Wages and salaries from jobs, rental income of property, interest from savings, profits flowing to shareholds...
Wealth is the current value of a stock of assets owned by someone or society as a whole.
Savings in bank accounts, ownership of property, shares/stocks in businesses, wealth held in pension schemes.
Is wealth/income inequality a form of market failu
Increasing inequality in the distribution of income and wealth is an example of market failure. Resources would not be distributed equitably (when material assets are split unfairly given peoples circumstances.)
What is equality?
Equality is the state of being equal, especially in status, rights or opportunities.
What is equity?
Equity offers varying levels of support depending upon peoples needs to achieve greater fairness of outcomes.
What is the difference between equality vs equity?
What are the govs objectives?
- Stable prices (low inflation, the target is 2% in England)
- Steady and sustained economic growth (growth of real GDP or National Output.)
- Low unemployment or full unemployment.
- Higher then average living standards (national income per capita)
- Improved global competitveness/Trade balence (BoP, which stands for balence of payments)
- More Equitable distribution of income and wealth.
Why is equitable distribution of income and wealth
Having more Equitable distribution of income and wealth is important because it can help people in poverty to achieve a better lifestyle.