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HomeHomework HelpeconomicsEconomic Inequality

Economic Inequality

Economic inequality refers to the unequal distribution of wealth and resources among individuals or groups within a society, while public policy encompasses the decisions and actions taken by government to address social issues, including strategies aimed at reducing economic disparities and promoting equitable access to resources and opportunities.

intermediate
3 hours
Economics
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Overview

Economic inequality is a pressing issue that affects societies worldwide. It refers to the unequal distribution of wealth and income, leading to significant gaps between different socio-economic groups. Understanding the causes and effects of economic inequality is crucial for developing effective p...

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Key Terms

Wealth Distribution
The way in which wealth is divided among the members of a society.

Example: In a society with high wealth distribution, a small percentage of people hold most of the wealth.

Income Gap
The difference in income between different groups in society.

Example: The income gap between the top 10% and the bottom 10% has been increasing in many countries.

Social Mobility
The ability of individuals or families to move up or down the social ladder.

Example: High social mobility means that people can improve their economic status through education and hard work.

Progressive Taxation
A tax system where the tax rate increases as the taxable amount increases.

Example: In a progressive tax system, higher earners pay a larger percentage of their income in taxes.

Universal Basic Income
A model of social security in which all citizens receive a regular, unconditional sum of money.

Example: Some countries are experimenting with universal basic income to reduce poverty.

Welfare Programs
Government programs that provide financial aid to individuals in need.

Example: Welfare programs can help reduce economic inequality by supporting low-income families.

Related Topics

Poverty
The state of having insufficient financial resources to meet basic living standards.
intermediate
Labor Economics
The study of labor markets, employment, and wages.
intermediate
Social Justice
The concept of fair and just relations between individuals and society.
advanced

Key Concepts

Wealth DistributionIncome GapSocial MobilityPublic Policy