Income and wealth Is efficiency, specialisation and trade benefitting everyone? If not who gains who loses?

Indices of real GDP per head – which counties are a long way below or above us? How far?

Why might some countries have higher GDP per head? Smaller populations might be quite productive so… Some countries have good natural resources so… Some might have started their industrial development earlier.. Skills and talents might concentrate in… What else might we need to know? Some might be low but growing fast so… Does the average indicate how every one is doing? Is GDP all we are interested in? – Happiness, quality of life

How is it changing?

Why is there inequality of income and wealth? Skills and talents Qualifications Discrimination Inheritance Regressive tax

The Gini coefficient measures inequality Conclusions and comments – whose tax system is having a big impact?

Historical perspective – comments conclusions?

Global picture The key facts from the report are: • The UK's figure was just under 0.35 before the financial crisis, higher than the OECD average of 0.316. • This is lower than the US, Mexico and Chile, which had the highest level of inequality in 2008 at a coefficient of almost 0.5. • Slovenia was the most equal: with a coefficient of just over 0.2 • Top 1 percent of earners increased their share of income from 7.1% in 1970 to 14.3% in 2005. Prior to the recession, the top 0.1 percent of earners accounted for 5% of pre-tax income, while income tax for higher earners declined from 60% in the 1980s to 50% The annual average income in the UK of the top 10% in 2008 was just under £55,000, about 12 times higher than that of the bottom 10%, who had an average income of £4,700. In very few countries is this position improving, but many of them are countries in severe economic straits: Greece, Spain and Ireland, for instance.

What is the impact of income and wealth inequality? Conflict Unequal access to opportunity Social unrest Inefficient use of resources Lower growth through MPC falling More incentive to try Natural justice?

In light of the figures you have collected, evaluate the statement that economic growth and business efficiency has led to rising living standard for all. 25mks Research data on poverty and growth- who gains and who loses from economic growth and efficiency? Write the essay Define growth and efficiency Arguments for growth and efficiency helping living standards Arguments against – does everyone benefit? Conclusion – is it true? - LR/SR, other factors, equality, efficiency, priority

In light of the figures you have collected, evaluate the statement that economic growth and business efficiency has led to rising living standard for all. 25mks Research data on poverty and growth- who gains and who loses from economic growth and efficiency? Write the essay Define growth and efficiency Arguments for growth and efficiency helping living standards Arguments against – does everyone benefit? Conclusion – is it true? - LR/SR, other factors, equality, efficiency, priority

The end of Micro! 1 2 3 4 5 6 Demand Supply Elasticity of demand Elasticity of supply Cross price elasticity Income elasticity Producer surplus Consumer surplus Taxation Subsidy Specialisation and division of labour Absolute advantage comparative advantage Productivity Land Labour Capital Enterprise Mixed economy Planned economy Free market economy Essential services Merit goods Demerit goods Price Substitutes complements Normal goods Inferior goods Poverty Economic growth benefits Inequality between rich and poor Productive efficiency Allocative efficiency Government failure