Define the term 'income inequality'
Income inequality is a statistical measure concerned with the spread of the distribution of income amongst the population of an economy.
It can be quantified through a variety of measures which condense the entire income distribution of a country into a single figure: varying from the range of incomes in a given population, the 90:10 ratio and, most notably, the Gini coefficient.
Focusing on the Gini coefficient, this is a measure which produces a figure between 0 and 1 for a given income distribution - the closer the figure is to 1, the more unequal the population.
ML
Related Economics A Level answers
All answers ▸What is price elasticity of demand and how does it affect equilibrium prices and quantities?
What is PED and how do I calculate it?
What impact would a cut in the base rate by the Bank of England have on Aggregate Demand?
Explain how The Monetary Policy Committee controls inflation within the UK economy.