<h2>Key Concepts and Summary</h2>
<p>Wages are influenced by supply and demand in labor markets, which can lead to very low incomes for some people and very high incomes for others. Poverty and income inequality are not the same thing. Poverty applies to the condition of people who cannot afford the necessities of life. Income inequality refers to the disparity between those with higher and lower incomes. The poverty rate is what percentage of the population lives below the poverty line, which is determined by the amount of income that it takes to purchase the necessities of life. Choosing a poverty line will always be somewhat controversial.</p>
<h2>Glossary</h2>
<h3>income inequality</h3>
<p>when one group receives a disproportionate share of total income or wealth than others</p>
<h3>poverty</h3>
<p>the situation of being below a certain level of income needed for a basic standard of living</p>
<h3>poverty line</h3>
<p>the specific amount of income needed for a basic standard of living</p>
<h3>poverty rate</h3>
<p>percentage of the population living below the poverty line</p>

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Key Concepts and Summary

Economics studies social behavior guiding the allocation of scarce resources to meet the unlimited needs and desires of the individual members of a given society, and for the production of goods and services, growth of production and welfare over time, and a great variety of other complex issues of vital concern to society. 

Economics

Discover the causes and impacts of poverty and economic inequality, explore programs like TANF, EITC, SNAP, and Medicaid, and learn about government policies to reduce income inequality in this tutorial.


Key Concepts and Summary

Key Concepts and Summary

Glossary

income inequality

poverty

poverty line

poverty rate

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