POL-5.A—Define measures of economic inequality in income and wealth

Define measures of economic inequality in income and wealth.

• Income levels and poverty rates vary greatly both across and within groups (e.g., age, gender, race) and countries.
• The Lorenz curve and Gini coefficient are used to represent the degree of inequality in distributions and to compare distributions across different countries, policies, or time periods. Exclusion: Drawing the Lorenz curve and calculating Gini coefficients are beyond the scope of the course and the AP Exam.
• Enduring understanding POL-5: Market outcomes can result in income inequality.