ECONOMICS
Unit 2: Contemporary Economic Issues
Area of Study 2: Economic efficiency and equity
Outcome 2
- On completion of this unit the student should be able to explain the factors and policies that may influence equity in the distribution of income and efficiency of resource allocation, and analyse the potential trade-off.
Key knowledge
- the difference between equity in the distribution of income and equality in the distribution of income
- measures of income inequality and poverty such as the Lorenz Curve, Gini Coefficient and Henderson Poverty Lines
- the difference between absolute and relative poverty.
Key skills
- define key economic concepts and terms and use them appropriately
- construct appropriate diagrams to represent the degree of income inequality
- identify trends, patterns, similarities and differences in economic data and other information
- access and synthesise information gathered from a range of sources and draw conclusions.