Economic Inequality
Definition
Economic inequality is the unequal distribution of income and opportunity between different groups in society. It is a widespread and pressing issue which includes disparities in wealth, earnings, and overall financial well-being.
Analogy
Imagine a pie representing all the wealth in a country. If that pie was cut into 100 slices and one person took 50 slices while 99 others had to share the remaining half, you'd see an example of economic inequality.
Related terms
Wealth Gap: The unequal distribution of assets among residents within a nation.
Income Disparity: Refers to the gap in earnings between different groups such as rich vs poor or men vs women.
Poverty Line: A measure used to determine who qualifies as being impoverished by comparing individual or family income with a set threshold.
"Economic Inequality" appears in:
Study guides (2)
Practice Questions (6)
Why might economic inequality serve as a centrifugal force in a nation?
How might economic inequality contribute to centrifugal forces in a country?
How does the Gini coefficient measure economic inequality within an urban area?
What does a low Gini coefficient indicate about economic inequality within a nation?
Why does a high Gini Coefficient indicate a higher level of economic inequality?
Which solution best assists countries suffering from economic inequality owing to globalization?
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