Economics Economic Indicators Questions
Income inequality refers to the unequal distribution of income among individuals or households within a society. It measures the disparity in earnings and wealth between different segments of the population. Income inequality is used as an economic indicator to assess the level of economic disparity within a country or region. It provides insights into the distribution of wealth and income, highlighting the extent to which wealth is concentrated in the hands of a few or distributed more evenly among the population. By analyzing income inequality, economists can evaluate the fairness of income distribution, identify potential social and economic issues, and assess the overall health and stability of an economy.