Learning objectives
Distinguish income, a flow received over a period, from wealth, a stock of assets owned at a point in time
Interpret the Gini coefficient as a measure of inequality of income or wealth, from 0 (perfect equality) to 1 (complete inequality)
Explain the economic causes of unequal income and wealth, such as differences in skills, education and wage rates, ownership of assets and inheritance
Analyse and evaluate policies that redistribute income and wealth: a minimum wage, transfer payments, progressive income tax, inheritance and capital taxes, and state provision of essential goods and services
(A Level) Draw and interpret a Lorenz curve, calculate the Gini coefficient from it, and distinguish absolute from relative poverty
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