Market Failure: Inequalities in the Distribution of Income and Wealth

AS Economics

Aims and Objectives

Aim: O Understand the difference between income, wealth and equity. Objectives: O Define income, wealth and equity. O Suggest reasons for income and wealth inequalities O Discuss whether situations are equitable

Starter
Decide on definitions for:
O Income O Wealth O Equity

Income
O Flow of earnings to a factor of production

over a period of time.

O Wages, salaries etc

Wealth
O A stock of owned assets
O Housing property or portfolio of shares

Equity
O Fairness or justness of a situation

Britains Street Kids

O Consider Britains Street Kids.
O There exists inequalities in your income and

wealth and the young peoples in the video.

O Discuss reasons as to why and how these

inequalities exist.
O What can be done to address these

inequalities?