Political Economy Economic Systems Questions
Economic inequality refers to the unequal distribution of wealth, income, and resources among individuals or groups within a society. It is a measure of the disparities in economic well-being and opportunities that exist between different individuals or social classes. Economic inequality can be measured through various indicators such as the Gini coefficient, which quantifies income or wealth distribution on a scale from 0 to 1, with 0 representing perfect equality and 1 representing extreme inequality. Factors contributing to economic inequality include differences in education, skills, access to resources, social mobility, and government policies. Economic inequality can have significant social and economic consequences, including reduced social cohesion, increased poverty rates, limited upward mobility, and decreased overall economic growth.