Economics Supply And Demand Questions
Income inequality refers to the unequal distribution of income among individuals or households within a society. It measures the disparity in income levels between the rich and the poor, highlighting the gap between the highest and lowest earners. Income inequality can be measured using various indicators such as the Gini coefficient.
On the other hand, poverty refers to a state of deprivation where individuals or households lack the resources necessary to meet their basic needs and enjoy a minimum standard of living. Poverty is typically measured using a poverty line, which sets a threshold income level below which individuals or households are considered to be living in poverty.
In summary, income inequality focuses on the unequal distribution of income across a population, while poverty focuses on the inability of individuals or households to meet their basic needs due to a lack of resources.