A graphic depiction of income distribution across the population, indicating the degree of economic inequality.
Pareto's Law, also known as the 80-20 Rule, posits that roughly 80% of effects come from 20% of the causes. In economics, it highlights income distribution where a small percentage of the population controls the majority of the income. This principle is essential for understanding resource allocation, inequality, and economic strategies for improving the lot of the poor.
Poverty is a socio-economic condition where an individual or a group lacks the financial resources and essentials for a minimum standard of living.
