Economic fairness; People with higher skills and experience are paid more. Hence, some inequalities are justified.
Equality
No inequalities exist so everyone is paid the same income
Unequal distribution of income
Imbalances in income distributions where a disproportionately large amount of national income is held by few members of society.
Unequal distribution of wealth (Wealth gap)
Imbalances in the distribution of a country's wealth among its citizens
The Lorenz curve describes the income distribution in a country by the amount of cumulative income or wealth held by a decile or quintile of the population.
Lorenz curve
The red line represents perfect income equality where everyone holds the same amount of income or wealth
The blue line represents an economy's actual income distribution
Gini coefficient can be calculated by the ratio of the area under the Lorenz curve to the area under the line of complete equality.
In other words,
Gini Coefficient=A+BA
Poverty
When an individual, household, community, or country are unable to meet their basic human needs.
Absolute poverty
The condition of being deprived of the basic human needs for survival such as malnutrition, hunger, lack of clean water, etc.
Relative poverty
Individuals or households whose incomes are unable to afford the standard of living in their country
International poverty line
Minimum threshold level of income that a person must earn in order to meet basic human needs for survival
National poverty line
The level of income below which a person in the country cannot meet basic minimum needs
