Chapter 4 Questions

Chapter 4 Questions - Chapter 4 Homework 1 Distinguish...

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Chapter 4 Homework 1. Distinguish between the functional distribution and personal distribution of income. Functional distribution indicates how the nation’s income is apportioned among wages, rents, interest, and profits, that is, according to the function performed by the income receiver. Personal distribution of income indicates how the nation’s total income is divided among individual incomes. Wages, Rent, Interest, Corporate, Proprietors income ~ Wages being the largest Which is being referred to in each of the following statements? “The combined share of wage income has remained remarkably stable at about 80% since the Second World War.” (Functional) “The relative income of the richest households is higher today than in 1970.” (Personal) 2. Assume that the five residents of Econoville receive income of $50, $75, $125, $250, and $500. Present the resulting distribution of income as a graph similar to Figure 4.2. Compare the incomes of the lowest fifth and the highest fifth of the income receivers? 4. What are the three major legal forms of business organization?
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Chapter 4 Questions - Chapter 4 Homework 1 Distinguish...

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