gcse economics - how we live - income, wealth & inequality

INCOME

This is money that a person receives over a period of time. It could be weekly, monthly or annually.

Examples:

- Wages (per week) Salaries (per month)
- Rent payments on their property Income from shares (dividends)
- Sale of shares

WEALTH

The stock of what a person owns or possesses

Examples:

- Money in the bank House
- Material goods e.g. cars, TV’s Shares

INEQUALITY

The unequal distribution of income and wealth in society

e.g. 1% of the population owns 20% of the nations wealth

& 50% of the population owns only 6% of the nations wealth

CAUSES OF INEQUALITY

- Different wages e.g. Beckham / roadsweeper
- Different levels of skill and education
- Inheritance (being born into it)
- Taking a risk and gaining a reward e.g. setting up business / shares

HOW TO REDUCE INEQUALITY

- Make the higher earners pay more income tax. (progressive ) (see page )
- Increase benefits for the unemployed
- Increase the minimum wage for low earners
- Increase inheritance tax (when people are given family money)
- Increase pensions

ACTION

a. What is bad about inequality in the UK?
b. Why do some people argue that is good to have some inequality in the UK?

These GCSE Economics revision notes have been kindly provided by Peter Davies of Mill Hill School, Ripley Keep Up-todate with your GCSE Economics - Subscribe Free to Economics in the News by Email

 

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