2.7 Income And Wealth Flashcards
1
Q
What is income ?
A
A flow of money which acts as a reward for the services of the FoP.
2
Q
What is Wealth ?
A
The stock of assets held by an individual or organisation
3
Q
What is the Flow Concept ?
A
Circular Flow where we are concerned with income
4
Q
What is the Stock Concept ?
A
Value of all assets available at a certain point.
5
Q
What do Income and Wealth Have ?
A
Positive Correlation
6
Q
What can reduce inequalities in Income and Wealth ?
A
Redistribution Policies, Time lag
