Unit 3.4 · Economics of Inequality and Poverty

Measuring Inequality

AO2AO4Diagram required

Syllabus Requirement

Using the Lorenz curve and Gini coefficient to evaluate income distribution.

Assessment Objectives
AO2Application and Analysis
AO4Use of Appropriate Skills

Summary

Measuring economic inequality involves assessing how national income is distributed among different segments of the population. This is important for understanding the extent of income disparities within an economy and can be quantified using statistical methods such as deciles and quintiles.