The various factors which influence the distribution of income and wealth
Several forces shape how income and wealth spread across a population. These include wages, taxes, government benefits, inheritance, and education.
Real World
In the UK, inheritance of property has been a major driver of wealth inequality: children of homeowners in London inherited assets worth hundreds of thousands of pounds while peers in rented households inherited nothing, compounding intergenerational inequality.
Exam Focus
Structure answers by separating income distribution factors from wealth distribution factors — the two lists overlap but are not identical.
Price Elasticity of Demand
PED = % change in quantity demanded ÷ % change in price
How well did you know this?