Key Idea: Topic 2.12 explains why free markets produce **unequal outcomes**, how inequality is **measured** (Lorenz curve, Gini coefficient), and the tools and trade-offs of **redistribution**.
✅ Core definitions
Equity ≠ equality. Equity is about **fairness** (normative). Equality is about **sameness** (descriptive). Always distinguish them in answers.
📊 Measuring inequality
🔧 Tools of redistribution
⚖️ The equity–efficiency trade-off
In evaluation: always state that the 'right' level of redistribution depends on **values** — economics shows trade-offs but cannot dictate the answer.