Pareto's Law

Definitions

Accounting

  • noun
    (written as Pareto’s Law)
    the theory that incomes are distributed in the same way in all countries, whatever tax regime is in force, and that a small percentage of a total is responsible for a large proportion of value or resources.

Economics

  • noun the theory that incomes are distributed in the same way in all countries, whatever tax regime is in force; Pareto saw that a small percentage of a total is responsible for a large proportion of value or resources.
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