Fair Distribution of Income Flashcards
1
Q
Explain 2 consequences of the unequal distribution of income.
A
POVERTY
LOWER ECONOMIC GROWTH
2
Q
State is the definition of income? (2 marks)
A
The flow of money over time.
3
Q
State a benefit of unequal distribution of income? (2 marks)
A
Trickle down effect- people with higher incomes spend more money in the economy and may start up their own business which leads to more people making money.
4
Q
State 2 causes of unequal distribution?
A
Inheritance
Saving
