Unit 3.4 · Economics of Inequality and Poverty
Equality vs Equity
AO2
Syllabus Requirement
Distinguishes between equal treatment (equality) and fairness (equity).
Assessment Objectives
AO2Application and Analysis
Summary
The concepts of equality and equity are important in economics, particularly in discussions about income and wealth distribution. Equality refers to a situation where everyone receives the same income, while equity acknowledges that some income differences may be justified based on individual qualifications and efforts, creating necessary economic incentives.