3.3 Income and Wealth key terms Flashcards
1
Q
define the term distribution of income
A
how incomes are shared between individuals and households
2
Q
define the term income
A
the reward for the service provided by a factor of production including labour
3
Q
define the term wealth
A
the market value of all the assets e.g, land and houses, money. whereas income is a flow over time
4
Q
define the term gross income
A
income received before taxes are take and benefits are given
5
Q
define the term net income
A
income available after the effect of direct taxes and benefits; also known as disposable income
6
Q
define the term distribution of wealth
A
how wealth is shared out between individuals and households
