(A Level) Equity, poverty and redistribution

Learning objectives

Distinguish equity (fairness) from equality, and explain the possible trade-off between equity and efficiency

Distinguish absolute from relative poverty and explain how a poverty trap arises when means-tested benefits are withdrawn as income tax is paid

Compare universal and means-tested benefits in terms of cost, take-up, targeting and incentives to work

Evaluate a negative income tax and a universal basic income as ways of achieving greater equity