Pages in this set

Page 1

Preview of page 1
Economics ­ The distribution of income & wealth:

The Distribution of Income & Wealth

Definition = the stock value of assets ­ It can be divided into marketable wealth & non-
marketable wealth

Marketable wealth = that which can be transferred between individuals e.g. property

Non-marketable wealth = cannot…

Page 2

Preview of page 2
Entrepreneurship ­ People taking risks and successfully building up a business
Chance ­ Numerous `instant millionaires' are made each year through winning the
lottery or premium bond holdings

The causes of wealth inequality:

Inheritance ­ Keeps wealth within one family (passed down through the generations)
Marriage ­ Wealthy people tend…

Page 3

Preview of page 3
The percentage of single parent families has increased which means more people are
either not in work or only work part-time

The causes of income inequality between households:

Impact of the state ­ A pure free-market system would not provide any welfare
benefits, whilst income differentials, particularly between those who…

Page 4

Preview of page 4
Methods of Intervention:

The following are ways in which Governments can influence income & wealth distribution
in society...


Progressive taxes take a higher percentage of the income or wealth of the rich to
make the distribution more equal
Regressive taxes such as V.A.T. take a higher percentage of the…


Sophie Price


like actually


Similar Economics resources:

See all Economics resources »