Learning objectives
Distinguish income from wealth and describe the sources of inequality, including differences in human capital, ability, bargaining power, discrimination, market power and inheritance
Interpret a Lorenz curve and explain how the Gini coefficient measures the degree of inequality
Classify taxes as progressive, regressive or proportional and explain how each affects the distribution of income
Explain how transfer payments and other government policies redistribute income, and discuss the trade-offs involved
Continue with a revision plan
These learning objectives are available to everyone. Sign in with an eligible plan to read the full note and worked examples.