Measuring income and wealth inequality: - Gini coefficient (calculation not required)

Economic reasons for inequality of income and wealth - Analyzing economic causes of income and wealth inequality.

Policies to redistribute income and wealth: - minimum wage - transfer payments - progressive income taxes, inheritance and capital taxes - state provision of essential goods and services

Meaning of national income - Defining national income as a measure of the total value of goods and services produced in an economy.

Measurement of national income: - Gross Domestic Product (GDP) - Gross National Income (GNI) - Net National Income (NNI)

Adjustment of measures from market prices to basic prices - Explaining the adjustment of national income measures from market prices to basic prices.

Adjustment of measures from gross values to net values - Explaining the adjustment of national income measures from gross values to net values.

Circular flow of income in a closed economy and an open economy: the flow of income between households, firms and government and the international economy - Illustrating the circular flow of income in closed and open economies.

Injections and leakages (multiplier not required) - Defining injections and leakages in the circular flow of income.

Equilibrium and disequilibrium (marginal and average propensities not required) - Explaining equilibrium and disequilibrium in the circular flow of income.

Definition of Aggregate Demand (AD) - Defining AD as the total demand for goods and services in an economy at a given price level.

Components of AD and their meanings: AD = C + I + G + (X - M) - Identifying the components of AD: consumption (C), investment (I), government spending (G), and net exports (X - M).