National Income Flashcards
1
Q
What do households receive
A
Factor incomes
2
Q
What do businesses hire
A
Land labour and capital
3
Q
What do firms receive
A
Payment from consumers for products
4
Q
What do the government collect
A
Taxes to fund spending on public services
5
Q
What is income
A
A flow of money going to factors of productions
6
Q
What is Wealth
A
Value of stock of assets owned by someone
7
Q
What is the Gini coefficient
A
Measure of income inequality that condenses the entire income distribution for a country into a single number between 0 and 1
