Distribution of Income and Wealth (AQA A-Level Economics): Flashcards
📚Flashcards
Practise the cards
10 cards from this deck
ShowHide
Practise the cards
10 cards from this deck
Income (economic concept)
Income (economic concept)
Flow of money received over a specific time period
Wealth (economic concept)
Wealth (economic concept)
Total value of everything owned at a point in time
Quintile
Quintile
One-fifth of a total amount divided into equal groups
Earned income examples
Earned income examples
Wages, salaries, self-employment income
Capital gain
Capital gain
When an asset's value increases
Equality vs equity in distribution
Equality vs equity in distribution
Equality=same treatment; equity=fair but different treatment
Lorenz curve shows
Lorenz curve shows
Cumulative % of income vs cumulative % of population
Gini coefficient of 0 means
Gini coefficient of 0 means
Perfect equality (everyone has same income)
Vertical equity principle
Vertical equity principle
Taking income from rich and redistributing to poor
Progressive taxation
Progressive taxation
As income rises, greater proportion paid in tax