Specification Content

Page 1

The Distribution of Income and Wealth

The difference between income and wealth

The various factors which influence the distribution of income and wealth

The difference between equality and equity in relation to the distribution of income and wealth

The Lorenz curve and Gini coefficient

The likely benefits and costs of more equal and more unequal distributions

Knowledge of the distribution of household income and wealth in the UK is expected

Understand the degree of inequality can be measured but that whether or not a given situation of income is equitable (fair and just) involved a value judgement

Interpret measures of inequality such as the Gini coefficient but no need to be able to calculate the Gini coefficient

Understand that excessive inequality is both a cause and consequence of market failure.

Appreciate that value judgments will influence people's views of what constitutes an equitable distribution of income and wealth and that these views will influence policy prescriptions

Page 2

The Problem of Poverty

The difference between relative and absolute poverty

The causes and effects of poverty

Page 3

Government Policies to Alleviate Poverty and to Influence the Distribution of Income and Wealth

The policies which are available to influence the distribution of income and wealth and to alleviate poverty

The economic consequences of such policies

Evaluate the various approaches to redistribution income and wealth and alleviating poverty, recognising the moral and political perspectives