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EconToMarks

Topic / economics

Inequality

Income, wealth and the distributional effects of economic change and policy.

Core exam brief

Know the idea before you use the evidence.

Definition

Economic inequality describes differences in income, wealth or economic opportunities across individuals and groups.

Chain of analysis

Taxes, transfers, wages, asset prices and access to education or housing can change both market-income and disposable-income inequality.

Evaluation trigger

Distinguish income from wealth inequality and assess incentives, poverty, social mobility, regional differences and the effectiveness of redistribution.

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Analysis and example bank

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