economics 3.3 fair distribution of income

what is the distribution of income?

how the total incomes of the economy are shared amongst people

what term describes the existence of people having more income that others?

inequality of income

what type of income is earned through working in a paid job?

wages

what type of income is earned through owners of land and property being paid by tenants to have it?

rent

define interest. 

the cost of borrowing money or the return for investing money. can be recieved from savings as a form of income 

define profit

the financial gain a business makes when its total revenue is greater than its total costs. a share can be given to those who invest in businesses.

name one more form of income.

state benefits

okay now name four excluding wages.

benefits, profits, investment, rent

define income vs wealth

income is a flow over time however wealth is your assets. in the “bath of wealth” your income is the water and your expenses go down the drain. whatever is left is your wealth. 

give three example of wealth

jewellery, a house, a car.

what term describes income after all taxes are paid?

net income/disposable income

define gross income

income before paying taxes and recieveing benefits

give four reasons why uneven income distribution happens

difference in wages

age

gender

difference in education

is inheritance a reason for uneven income or wealth distribution?

wealth

name 3 reasons for uneven wealth distribution

savings

purchase of property

enterprise

(inheritance)

name three consequences of inequality

poverty and deprivation

poor housing

poor health

inequality of opportunity

why would poor health come about as a result of inequality?

people cant afford basic food that is healthy for them, or maybe they cant buy medicine (healthcare is free here tho)

why would an imbalance of opportunity be a result of an uneven income distribution?

because people cant afford education or the resources to educate themselves.