Income inequality
What Income inequality means in Economics B A-Level, as defined for Pearson Edexcel.
Definitions of Income inequality
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Reference: Pearson Edexcel
A situation where income is distributed unevenly, often high in developing and emerging economies where a small number of very wealthy individuals exist.
A flow of money over time that is unevenly spread, which progressive taxation can reduce by taking a larger proportion from high earners.
An unequal distribution of the benefits of growth, which rising incomes may widen if growth is not inclusive.
Topics that use Income inequality
- Developed, emerging and developing economies (Pearson Edexcel A-Level)
- Growing economies (Pearson Edexcel A-Level)
- Re-distribution of income and wealth (Pearson Edexcel A-Level)
Related terms
- Economic growth
- Base year
- Demand-pull inflation
- Emerging economies
- Emerging markets
- Foreign direct investment (FDI)
- GDP per capita
- Global economic shifts
Using Income inequality in the exam
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