Principles of Microeconomics / Unit 14 MIC 1301 short lesson, about 20 seconds
Poverty and Inequality: Two Questions
Captions available
The idea
Poverty asks how many people fall below an income needed for a basic standard of living, the poverty line. Inequality asks how income is shared across the whole distribution. They can move separately.
In practice
Every income falls ten percent: poverty rises, inequality is unchanged.
Where people slip
A rise at the top raises inequality and leaves poverty untouched; keep the two measures apart.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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