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Economics ­ The distribution of income & wealth:


The Distribution of Income & Wealth
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…

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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…

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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…

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Methods of Intervention:

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

Taxation:

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…

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