2.  Ray: "economic inequality is the fundamental disparity that permits one individual certain material choices, while denying another individual those same choices."  Ray: "economic inequality is a slippery concept and is intimately linked to concepts such as lifetimes, personal capabilities, and political freedoms."

4. Income share of each group Cumulative income share of each group Equal Society Less Equal Society Lorenz (Equal Society) Lorenz (Less Equal Society) Poorest 20%20%5%20%5% Low-Mid 20%20%12.5%40%17.5% Mid 20%20% 60%37.5% High-Mid 20%20%25%80%62.5% Richest 20%20%37.5%100%

7. B Gini Coefficient A Gini = A/B If A = 0, then G = 0 (Perfect Equality) If A = B, then G = 1 (Perfect Inequality) B

8. CountryKuznets Ratio of Income Inequality Index India1.96 Sri Lanka1.67 Puerto Rico2.33 US1.29 UK1.25 Source: Kuznets (1955)