Explain what is meant by the distribution of income.

      

Explain what is meant by the distribution of income.

  

Answers


marlyne
When economists talk about the distribution of income they are normally referring to how a nations total income is distributed amongst its population. However they may also be referring to how income is distributed between the main factors of production. This is known as factor income distribution.
Economists have devised a number of different methods of measuring income distribution including the Lorenz Curve, the Gini Coefficient and the Hoover Index. Many economists consider extreme inequality in the distribution of income to be a source of market failure.
marlinbito answered the question on July 6, 2018 at 18:36


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