income distribution (6)

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8 Terms

1
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What is income distribution?
How income is shared among individuals and households.
2
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Why is income distribution important?
It shows how evenly income is spread across society.
3
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What is a quintile?
One of five equal groups containing 20% of households each.
4
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What is private income?
Income before taxes and transfer payments.
5
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What is disposable income?
Private income minus taxes plus transfer payments.
6
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What is the income inequality ratio?
The richest quintile's income share divided by the poorest quintile's income share.
7
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What does a high income inequality ratio indicate?
Greater income inequality.
8
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Why is wealth often more unequally distributed than income?
Wealth accumulates over time and generates more wealth.