3.3 Fair Distribution of Income Flashcards
1
Q
Distribution of Income
A
How incomes are shared out between individuals and households
2
Q
Different Types of Income
A
- Wages
- Rent
- Interest
- Profit
- State Benefits
3
Q
Difference Between Income and Wealth
A
- Income is the reward for the service provided by a factor of production, eg. Labour.
- Wealth is the market value of all assets owned by a person, group/country at a specific time, eg. Houses.
- Income is a flow over time.
- Wealth can be measured at a point in time.
- Income is received in return for their labour services.
- Wealth is a stock of assets and can be given a monetary value to calculate an individual/household’s wealth.
4
Q
Distribution of Wealth
A
How wealth is shared out between individuals and households