Discuss the concept of poverty and inequality.

Poverty refers to a state of deprivation where individuals or households lack the resources necessary to meet their basic needs, such as food, shelter, and healthcare. It is often measured using a poverty line, which sets a minimum income level below which individuals or households are considered to be living in poverty.

Inequality, on the other hand, refers to the unequal distribution of resources, opportunities, and wealth among individuals or groups within a society. It can manifest in various forms, such as income inequality, wealth inequality, and educational inequality. Inequality can have negative social and economic consequences, as it can lead to social unrest, hinder economic growth, and limit opportunities for upward mobility.

Both poverty and inequality are important concepts in welfare economics, as they highlight the need to address disparities and ensure a more equitable distribution of resources and opportunities. Governments and policymakers often implement various measures, such as social welfare programs, progressive taxation, and education reforms, to reduce poverty and inequality and promote overall societal well-being.