Economic inequality refers to what?

Economic inequality is best defined as the variance of wealth and poverty within a population. This concept encompasses the disparities in income and resources that exist between different individuals or groups, highlighting the differences in their economic status. This includes factors such as wealth distribution, access to opportunities, and overall standards of living, painting a broad picture of how economic resources are shared or concentrated within society.

When we consider the other choices, they fall short of capturing the full scope of economic inequality. The wealth of the median household is a specific measure that does not account for the variability and range of wealth across all households. Financial literacy of the upper class is a concept focused on knowledge and skills related to managing finances, which does not directly relate to the distribution of wealth and poverty. Lastly, the earnings of individuals in paid employment only represent a slice of the broader economic inequality picture, as it does not take into account wealth accumulated through inheritance, investments, and other non-wage sources. Thus, the correct choice accurately reflects the comprehensive nature of economic disparities in society.