What is the term for the disparity in income distribution among individuals?

The correct term for the disparity in income distribution among individuals is income inequality. This concept refers to the uneven distribution of income within a population, highlighting how some individuals or households earn significantly more than others. Income inequality is often measured using various statistical indices, such as the Gini coefficient, which quantifies the degree of income disparity in a society.

Income inequality can have various implications for economic stability, social cohesion, and overall well-being within a community or country. High levels of income inequality can lead to increased social tension and conflict, as well as hinder economic growth by limiting opportunities for those at the lower end of the income spectrum.

The other terms do not accurately describe the same concept: income equality would suggest an even distribution with no disparities, income redistribution refers to policies aimed at adjusting the income distribution (e.g., through taxation or social welfare), and income balance does not have a widely recognized definition in economics related to this topic. Thus, income inequality is the most appropriate term to describe the disparity in income distribution among individuals.