wealth

wealth

1. all the accumulated physical and financial assets which enable people and businesses to earn an income
2. the monetary value of what is owned at a particular point in time

physical wealth

tangible or real assets, such as clothes, furniture, houses, vehicles, trading stock, land and buildings

financial wealth

intangible or monetary assets; such as cash, bank deposits, investment, shares and loans.

Physical wealth

tangible or real assets, such as clothes, furniture, houses, vehicles, trading stock, land and buildings

Financial wealth

intangible or monetary assets; such as cash, bank deposits, investment, shares and loans

Income

the earnings people receive for the work they do or the assets they own

Income distribution

the way in which income is divided amongst households

Area of inequality

area between the line of equal distribution and the Lorenz curve

Gini coefficient

the ratio measuring the exact degree of inequality, calculated using information provided by the Lorenz curve

Gini index

Gini coefficient x 100

savings

Income (Y)  – Consumption expenditure (C) = Savings (S)

\
Y-C=S

income

the earnings people receive for the work they do or the assets they own

Income distribution

the way in which income is divided amongst households

line of %%equal distribution%% / line of %%perfect equality%%

45 ° line (diagonal) that serves as a reference point - shows perfectly equal distribution of income

area of inequality

the area between the line of equal distribution and the Lorenz curve

gini index

gini coefficient × 100

gini coefficient

the ratio measuring the exact degree of inequality, calculated using information provided by the Lorenz curve