3.3 - fair distribution of income

Question 1

distribution of income

Answer 1

how incomes are shared out between individuals and households

Question 2

income

Answer 2

the reward for the service provided by a factor of production, including labour

Question 3

types of income

Answer 3

wage, rent, profit, interest, state benefits

Question 4

wealth

Answer 4

the market value of all the assets owned by a person, group or country at a specific point in time.

Question 5

what is the difference between income and wealth

Answer 5

income is a flow over time and wealth can be measured at a point in time

Question 6

gross income

Answer 6

income received before any taxes are taken or benefits given

Question 7

net income

Answer 7

income available after the effect of direct taxes and benefits (disposable income)

Question 8

why is income unevenly distributed in the UK

Answer 8

differences in wages, reliance on benefits, age, gender

Question 9

what is distribution of wealth

Answer 9

how wealth is shared out between individuals and households

Question 10

why is wealth unevenly distributed

Answer 10

inheritance, savings, purchase of property, enterprise

Question 11

consequences of differences in income + wealth in an economy

Answer 11

poverty + deprivation, poor housing, poor health, inequality of opportunity