Income inequality refers to the uneven distribution of income within a population. The rich earn a disproportionately larger share of the total income compared to the poor.
Imagine if you and your friends ordered a pizza with 10 slices. If one person took half the pizza, leaving everyone else to split the remaining five slices, that's similar to income inequality - where a small portion of people have most of the wealth while others have much less.
Wealth Distribution: This is how wealth is divided among individuals in a society. It's closely related to income inequality but focuses more on assets than income.
Poverty Line: This is an economic measure that determines if an individual or family can afford basic necessities such as food, shelter and clothing.
Gini Coefficient: A statistical measure used globally to gauge economic inequality; it ranges from 0 (perfect equality) to 1 (maximum inequality).
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