Notesale: Turn your study into money

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The distribution of income and wealth

Wealth - is a stock of valuable assets
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Marketable wealth is that which can be transferred between
individuals, for example property, whilst non marketable wealth cannot be transferred
between individuals, for example life assurance
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We can analyse the distribution of income by factor of
production (also known as the functional distribution of income, between households
and between regions
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We can analyse the distribution between labour, capital,
land and entrepreneurs
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Household income includes
income from wages, salaries, investment income, pensions and transfer payments such
as welfare benefits

A method of measuring and illustrating the degree of inequality in the distribution of
income and wealth is the Lorenz curve
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Some economists do not favour substantial intervention, arguing that differences in
income and wealth can as signals , providing important incentives
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Taxation - Taxes can be categorised by their incidence
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Monetary benefits - Benefits
Direct Provision of goods and services - These include the provision of for example
health care, education and school meals for poor
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Absolute poverty may be addressed by introducing measures to raise the
income of the very poorest groups in society, whereas tackling relative poverty implies
using measures to reduce the gap between the rich and the poor
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A national minimum wage, Cutting the bottom rates of
income taxes , tackling unemployment, Training and education ~ this should increase
the productivity and potential productivity of the low paid and thereby improve their
long term job prospects and earning potential
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