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Chapter 6:Distribution of Income - Coggle Diagram
Chapter 6:Distribution of Income
Personal income
amount of funds
other benefit measured in money terms
Income inequality
income is unevenly distributed
measured by the state of total income received by different group
Exp:T20,M40,B40
Lorenz curve
Graphical representation of income distribution
the further the curve is a way from this line,the greater the degree of income inequality
Gini coefficient
measure extent of income inequality
A/A+B
the smaller the Gini coefficient,the more even the distribution of income
Sources of income
Wages
Rent from land
Earning from capital
Profit from the sale of entrepreneurial skills
Transfer payment