ECONOMICS
INCOME DISTRIBUTION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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All four
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Different wages relating to different skills
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Unemployment and pensioners earn less
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Wages higher in the public sector than in the private sector
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Differences between regions
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Detailed explanation-1: -Factors affecting the distribution of income include: factors of production, difference between earned and unearned income, wage and salary difference, globalisation, and migration.
Detailed explanation-2: -The macroeconomic variables that are found to be associated with an improvement in income distribution are higher growth rate, higher income level, higher investment rate, real depreciation (especially for low-income countries), and improvement in terms of trade.
Detailed explanation-3: -An income derived from any factor of production is called a factor income. There are four factors of production, they are; Land, capital, labor and enterprise.
Detailed explanation-4: -The two types of income distribution are equal and unequal income distribution.
Detailed explanation-5: -2.1 Globalization. 2.2 Superstar hypothesis. 2.3 Education. 2.4 Skill-biased technological change. 2.5 Race and gender disparities. 2.6 Incentives. 2.7 Stock buybacks.