- Explain the difference between equity in the distribution of income and equality in the distribution of income.
- Explain that due to unequal ownership of factors of production, the market system may not result in an equitable distribution of income.
- Distinguish between absolute poverty and relative poverty.
- Explain possible causes of poverty, including low incomes, unemployment and lack of human capital.
- Explain possible consequences of poverty, including low living standards, and lack of access to health care and education.
Indicators of income equality/inequality
- Analyse data on relative income shares of given percentages of the population, including deciles and quintiles.
- Draw a Lorenz curve and explain its significance.
- Explain how the Gini coefficient is derived and interpreted.