Economics A-Level
Inequality
What Inequality means in Economics A-Level, as defined for AQA.
Definitions of Inequality
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Reference: AQA
A positive concept that can be objectively measured using statistical tools, such as comparing the percentage of total income earned by the top decile of earners with the bottom decile.
A widening of wealth inequality is one way growth may affect individuals, and government intervention such as taxation or regulation can mitigate this negative impact.
Severe inequalities in the distribution of income and wealth mean the price mechanism only responds to those with purchasing power, leaving basic needs unmet.
A gap that globalisation can widen between skilled and unskilled workers, and that investing in education can reduce by raising earning potential.
Unequal income distribution and broader societal deprivations not captured by national averages, accounted for by the Inequality-adjusted HDI.
Wealth in the UK is significantly more unequally distributed than income, and income inequality remains high compared to many European peers.
Topics that use Inequality
- Economic growth and development (AQA A-Level)
- Economic growth and the economic cycle (AQA A-Level)
- The distribution of income and wealth (AQA A-Level)
- The meaning of market failure (AQA A-Level)
Related terms
- Externalities
- Macroeconomic performance
- Market failure
- Aggregate demand
- Aggregate supply
- Allocative efficiency
- Asset Ownership
- Asset price bubbles
Using Inequality in the exam
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