What is Equity vs Equality? | The Difference Explained | IB Macroeconomics

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In this step, you'll learn about the difference between equity and equality in the distribution of income. Equality would mean that everyone earns the same amount of money regardless of what skills he or she provides to the labor market. Equity in the distribution of income refers to the fairness in the distribution of income. Increased fairness can be achieved through macroeconomic policies like higher tax rates on wealthy people and fiscal policies that redistribute nations through transfer payments and public goods. The Lorenz curve can be used to measure income equality."